Determine which statement about U.S. Treasury bill & Gov't of Canada Treasury bill is false assuming positive
Question:
Determine which statement about U.S. Treasury bill & Gov't of Canada Treasury bill is false assuming positive quoted rate.
I.A 90-day U.S. T-bill with maturity value 10,000 & price 9,800 has a quoted rate of 8%.
II.A 180-day Gov't of Canada T-bill with maturity value 10,000 & price 9,600 has a quoted rate of 8.45%.
III.A U.S. T-bill has a lower quoted rate than an otherwise equivalent Gov't of Canada T-bill with the same term, maturity value, &
price.
IV.A U.S. T-bill & a Gov't of Canada T-bill earn the same amount of interest if they have the same term, maturity value, & price.
V.If a U.S. T-bill & Gov't of Canada T-bill has the same maturity value, quoted rate, & term, then the price of the U.S. T-bill would
be higher.
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary