The price of a T-bill today is $97 and its maturity value is $100. The maturity is 6 months from now.

Question

TuteeHUB · Accepted Answer

The investor can lose money on these T-bills if held to maturity

TuteeHUB · Answer

The dollar return to the investor would be $1 if held to maturity

TuteeHUB · Answer

The investor cannot lose money, but its earnings are not known before the maturity date

TuteeHUB · Answer

The dollar return to the investor would be $3 if the T-bill is held to maturity

1.	The price of a T-bill today is $97 and its maturity value is $100. The maturity is 6 months from now.
A.	The dollar return to the investor would be $1 if held to maturity
B.	The investor cannot lose money, but its earnings are not known before the maturity date
C.	The dollar return to the investor would be $3 if the T-bill is held to maturity
D.	The investor can lose money on these T-bills if held to maturity
Answer» D. The investor can lose money on these T-bills if held to maturity

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