Treasury bills are sold in terms ranging from a few days to 52 weeks. Treasury bills, also known as T-Bills, are typically sold at a discount from the par amount (also called face value).
For instance, you might pay $990 for a $1,000 Treasury bill. When the Treasury bill matures, you would be paid $1,000. The difference between the purchase price and face value is the interest.
It is possible for a Treasury bill auction to result in a price equal to par, which means that Treasury will issue and redeem the securities at par value. You...
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