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

  • Outright forward transaction (forward)
    Outright forward transaction (forward) is transaction that requires delivery at a future ...
  • Wholesale Bank
    Bank that provides services to large corporation is called wholesale bank, and the function ...
  • Original Medicare Plan
    Original Medicare Plan is the traditional plan for beneficiaries run by the federal government ...
  • Goodwill
    The largest intangible asset that appears on a company’s balance sheet is goodwill. ...
  • Take-out Merger
    Take-out Merger is the second-step transaction which merges the acquired firm into the ...