Asked by
Fadel Alshammasi
on Oct 25, 2024
Verified
Use the following statements to answer this question: I. Corporate paper rates are typically less than one percent higher than Treasury bill rates.
II) Treasury bill rates may be viewed a short-term, risk-free rates.
A) I and II are true.
B) I is true and II is false
C) II is true and I is false
D) I and II are false
Treasury Bill Rates
The interest rates associated with short-term government securities issued by the Treasury of a country, considered low-risk investments.
Risk-Free Rates
The return on investment that is guaranteed for a risk-free asset, where there is no risk of financial loss.
- Understand the characteristics and differences between various short-term financial instruments such as corporate paper, treasury bills, and commercial paper.
Verified Answer
NK
Learning Objectives
- Understand the characteristics and differences between various short-term financial instruments such as corporate paper, treasury bills, and commercial paper.