![2. US Treasury bill, US Treasury note, US Treasury bond] Discuss the differences among the three instruments, focusing on the](http://img.homeworklib.com/questions/bf51f180-7942-11ea-909f-475ff07d2ebc.png?x-oss-process=image/resize,w_560)
Homework Answers
Answer: Please find below a comparison of the Treasury Bills, Treasury Bonds and Treasury Notes on the various points :
|
Coupon (Yes/No) |
Maturity |
Frequency of coupon payment |
Common US products (in maturity terms) |
|
|
Treasury Bills |
Yes |
On Maturity T-bills are issued. |
Only on maturity or quarterly depending upon the viability of the bills and the coupon. |
T- Bills and issuance notes. |
|
Treasury notes |
No |
No longer issued |
No longer issued |
No longer issued. |
|
Treasury bonds |
Yes |
The Treasury bonds are quite similar to the T-Bill issuance with the difference in the nature of the bondage terms of the coupons. |
Only on maturity or quarterly depending upon the viability of the bonds and the coupon. |
In the form of bonds papers or in the Government registered bond issuance. |
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Refer to the T-note and T-bond quotes in Table
6–1.
a. What is the asking price on the 1.625 percent June 2020
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(For all requirements, round your answers to 2 decimal places.
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