Which of the following securities typically trades on a discount basis?
A) Treasury notes
B) Treasury bills
C) Money market funds
D) Certificates of deposit

Question

Quizplus · Accepted Answer

Treasury bills typically trade on a discount basis, meaning that they are sold for less than their face value with the difference representing the interest earned. Treasury notes, money market funds, and certificates of deposit may trade at a discount or at a premium, depending on various market factors.

Which of the Following Securities Typically Trades on a Discount