A U.S. Treasury bill sold in the secondary market on a Thursday has a regular-way settlement of:

The correct answer is that a U.S. Treasury bill sold in the secondary market on a Thursday has a regular-way settlement of Friday. In the context of securities transactions, "regular-way" settlement refers to the standard time frame in which a trade must be settled after the transaction occurs.

For U.S. Treasury bills and other government securities, the regular settlement timeframe is one business day after the trade date (T+1). Since the trade occurs on Thursday, the next business day is Friday, which is when the settlement will take place. Knowing this settlement process is crucial for understanding cash flow and the timing of security ownership transfer after a transaction. This reflects the operational norms within financial markets, where the timing of settlements may differ based on the type of security being traded, and it's important for participants to be aware of these timelines to ensure compliance and proper financial planning.