Treasury bills are short-term instruments that mature in 13, 26, or 52 week periods. Which statement is true?

Treasury bills are short-term instruments that mature in 13, 26, or 52 week periods. Which statement is true?

• A. True
• B. False
• C. Only 30 days
• D. 100 days

Answer: (A)

Treasury bills are short-term government securities sold at a discount and redeemed at par, with no periodic interest payments. The standard maturities for these bills are 13 weeks, 26 weeks, and 52 weeks (roughly 3 months, 6 months, and 1 year). This is why the statement is true: it reflects the common fixed maturities used for T-bills. Investors gain from the difference between the discounted purchase price and the par value received at maturity, while the instrument remains highly liquid and low risk. Other lengths like 30 days or 100 days are not the typical offerings for government T-bills in this context.

Treasury bills are short-term government securities sold at a discount and redeemed at par, with no periodic interest payments. The standard maturities for these bills are 13 weeks, 26 weeks, and 52 weeks (roughly 3 months, 6 months, and 1 year). This is why the statement is true: it reflects the common fixed maturities used for T-bills. Investors gain from the difference between the discounted purchase price and the par value received at maturity, while the instrument remains highly liquid and low risk. Other lengths like 30 days or 100 days are not the typical offerings for government T-bills in this context.