Which of the following is not a characteristic of Treasury bills? (a) They have low interest-rate...

Which of the following is not a characteristic of Treasury bills?

(a) They have low interest-rate risk.

(b) The interest they pay is based on a coupon rate announced weekly by the Treasury.

(c) The market for them is deep and liquid.

(d) They have zero default risk

justify answer

Expert Solution

Option B is correct as it is false

The interest they pay is based on a coupon rate announced weekly by the Treasury

Treasury Bills don't pay coupons

jeff jeffy answered 2 years ago

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