Which of the following securities regularly trades on a discount basis?
A) Government bonds
B) Treasury bills
C) Swap deposits
D) Certificates of deposit

Question

Quizplus · Accepted Answer

Treasury bills are known to trade on a discount basis, meaning they are sold for less than their face value and the investor earns the difference between the purchase price and face value at maturity. Government bonds, swap deposits, and certificates of deposit do not typically trade on a discount basis.

Which of the Following Securities Regularly Trades on a Discount