The government issues treasury bills at the discounted rate from ____________?
Correct answer: A. face value
- A. face value
- B. book value
- C. premium value
- D. federal value
Explanation
Treasury bills are zero-coupon instruments issued below their face value and redeemed at face value on maturity. The difference between the discounted purchase price and face value represents the investor’s return.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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