SAIFM RPE Money Market Practice Questions - SAIFM Registered Person Examination The Money Market Exam

How do Treasury Bills generate a return for investors despite paying no periodic coupon interest?

They are sold at a discount to face value and mature at full face value They pay variable floating dividend payments based on JIBAR They pay inflation-indexed semi-annual interest bonuses They convert into corporate equity shares at maturity

Correct Answer:

They are sold at a discount to face value and mature at full face value

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