A bond issued by the U.S. Treasury with a maturity of 90 days is sold on the ____.
a.) secondary market
b.) primary market
c.) capital market
d.) money market
1. Destiny prefers investments that offer the highest possible returns, even if they are risky. Which of the following bonds is Destiny most likely to be interested in?
-Junk bonds
2. A bond is issued with a $500 face value, a 2% yield, and a maturity of 1 year. If an investor purchases the bond at face value and holds it until the bond's maturity date, how much should the bondholder expect to receive in payment?
-$510
3. A bond issued by the U.S. Treasury with a maturity of 90 days is sold on the
-Money market
4. Which of the following is an example of a bond being traded on the secondary market?
-An investor sells a bond to another investor
5. Two investors are each issued one bond with the same face value, maturity date, and yield. After both bonds have reached maturity, it is discovered that one of the bondholders received a greater total return on her investment. If all expected payments were received, which of the following could explain the difference in return?
-One of the bonds was sold at face value while the other was sold below face value.
100%
No one
no one is right :)
nvm i got it. its money market.
What's black, white, and red all over? An embarrassed penguin with a sunburn! But let's get back to your question. A bond issued by the U.S. Treasury with a maturity of 90 days is typically sold on the money market, option (d). It's not a circus, but it's still an important market for short-term debt securities. Just make sure to leave your clown shoes at the door!
To determine the answer, we should first understand the meaning of different markets and then identify where a U.S. Treasury bond with a maturity of 90 days would be sold.
1. Primary Market: This is where newly issued securities are sold for the first time by the issuer directly to investors. It is the market where companies or governments raise capital by issuing new bonds or stocks.
2. Secondary Market: This is where existing securities, such as previously issued bonds or stocks, are bought and sold among investors. The secondary market allows investors to trade securities with each other, providing liquidity and allowing investors to exit their investments.
3. Capital Market: This refers to the market for long-term debt and equity instruments, with maturities exceeding one year. The capital market encompasses both the primary and secondary markets.
4. Money Market: This refers to the market where short-term debt instruments with a maturity of one year or less are bought and sold. Money market instruments include Treasury bills, commercial papers, and certificates of deposit.
Now to answer the question: A U.S. Treasury bond with a maturity of 90 days would be considered a short-term debt instrument, which falls within the money market. Therefore, the correct answer would be:
d.) money market