📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      Question

      Which one of the following is/are True about the difference between Bonds and Treasury Bills? I- maturities less than 1 year are called T-bills and those more than one year are called bonds. II- T-bills are issued at a discount to their true (PA

      • R value and upon expiry, its redeemed at its true value. III- T-bills can’t be bought by Individuals.
      A Only I Correct Answer Incorrect Answer
      B Only II Correct Answer Incorrect Answer
      C I & II Correct Answer Incorrect Answer
      D II & III Correct Answer Incorrect Answer
      E All of the above Correct Answer Incorrect Answer

      Solution

      G-Secs is a collective term for these two types of securities: maturities less than 1 year are called T-bills and those more than one year are called bonds. There are three T-bills variants and they vary based on the maturity period. They are 91 days, 182 days, and 364 days. T-bills do not carry an interest component, in fact, this is one of the biggest differences between T-bills and Bonds. T-bills are issued at a discount to their true (PAR) value and upon expiry, its redeemed at its true value.

      Practice Next
      More Capital Market Questions
      ask-question