Definition

Treasury Bills

A treasury bill is a short-term (usually less than one year ,typically three months) borrowing instrument issued and controlled by the Govt.

Instruments are typically sold at discount price from the face value. It would be paid face value when the bill matures.The difference between the purchase price and face value is profit for the buyer.

In US, the term of this bill is 91 days, 182 days and at last 1 year.

Share it:  Cite

More from this Section

  • Loan strip
    Loan strip is the sale of a portion of a large loan for a short period of time, usually ...
  • Monetizing the debt
    Monetizing the debt is a method of financing government spending whereby the government ...
  • Nondiversifiable risk
    Nondiversifiable risk is a risk that affects the entire economy or large numbers of persons ...
  • Autoquote
    Autoquote indicative prices are generated for many of the financial options contracts ...
  • Transaction exposure
    Transaction exposure measures changes in the value of outstanding financial obligations ...