QUESTION

3

Which of the following statements correctly describes

the characteristics of the money market instruments?

a.   

The par value of the money market security is the same

as the issue value.

b.   

The issue value is a discounted amount of the par

payable by the investors.

c.    

The yield or actual return is the same as the discount

rate.

d.   

In most cases, the issuance value will be less than

the par value.

1.   

a

and b

2.   

b

and c

3.   

a

and c

4.   

b

and d