Which of the following securities trades on a discount basis?
A) Treasury notes
B) Treasury bills
C) Commercial paper
D) Certificates of deposit

Question

Quizplus · Accepted Answer

Treasury bills are issued at a discount and mature at face value, which means they trade on a discount basis. Treasury notes and commercial paper are typically sold at par value, while certificates of deposit can either trade at a discount or a premium depending on market conditions.

Which of the Following Securities Trades on a Discount Basis