Asked by Jonathan Gibbons on May 27, 2024
Verified
T-bills are issued with initial maturities of:
I. 4 weeks
II. 16 weeks
III. 26 weeks
IV. 32 weeks
A) I and II only
B) I and III only
C) I, II, and III only
D) I, II, III, and IV
Initial Maturities
The onset period before a bond, note, or other financial instrument reaches its due date for payment.
T-Bills
Treasury Bills are short-term U.S. government debt obligations backed by the Treasury Department with a maturity of one year or less.
- Understand the characteristics and purposes of various market securities, including T-bills and commercial paper.
Verified Answer
ZH
Zachary HarrillMay 29, 2024
Final Answer :
B
Explanation :
T-bills are issued with initial maturities of 4 weeks (28 days), 8 weeks (56 days), 13 weeks (91 days), 26 weeks (182 days), and 52 weeks (365 days). Therefore, options I, II, III are correct, while option IV is not. Among the given options, choice B (I and III only) correctly identifies the initial maturities of T-bills.
Learning Objectives
- Understand the characteristics and purposes of various market securities, including T-bills and commercial paper.
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