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  3. 5) suppose that you purchase a 91-day treasury bil

5) Suppose that you purchase a 91-day Treasury bill for $9,850 that is worth $10,000...

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5) Suppose that you purchase a 91-day Treasury bill for $9,850 that is worth $10,000 when it matures. The security's annualized yield if held to maturity is about A) 4 percent. B) 5 percent. C) 6 percent. D) 7 percent. 6) If your competitive bid for a Treasury bill is successful, then you will A) certainly pay less than if you had submitted a noncompetitive bid. B) probably pay more than if you had submitted a noncompetitive bid. C) pay the average of prices offered in other successful competitive bids. D) pay the same as other successful competitive bidders. 7) Federal funds are A) usually overnight investments. B) borrowed by banks that have an excess of reserves. C) lent by banks that have a deficit of reserves. D) all of the above. 8) Asset-backed commercial paper differs from conventional commercial paper in that A) it is backed (secured) by some bundle of assets. B) its maturity usually extends well beyond 1 year. C) both A and B of the above. D) neither A nor B of the above

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