Treasury bill

• All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury Bills (T-bills). The Treasury currently issues three-month and six-month T-bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth cash flows.

• A non-interest bearing discount security issued by the U.S. Treasury to finance the national debt. Most bills are issued to mature in three months, six months, or one year.

• A short-term financial security issued by the Government of Canada issued weekly on an auction basis, having varying maturities, generally under a year, and virtually no risk.

• A non-interest-bearing discount security issued by the U.S. Treasury to finance the national debt.

• Treasury bills, notes, and bonds. Federal government-backed debt securities; bills range in maturity from 3 months to one year; notes mature in one to 10 years; bonds mature in 10 to 30 years.

• A marketable U.S. government debt security with a maturity of less than one year. Treasury bills are issued through a competitive bidding process at a discount from par; there is no fixed interest rate. Also known as T bill.

• Debt obligations of the U.S. Treasury that have maturities of one year or less. Maturities for T-bills are usually 91 days, 182 days, or 52 weeks.

• Are government obligations with less than 1 year to maturity. Original maturities of 3 months, 6 months, and one year (actually 52 weeks or 364 days). They do not pay any coupon interest. Instead, interest is paid by selling these securities as a discount. The difference between the market price and face value provides interest payments.
Price = 100(1 - Actual discount)
Actual discount = (Quoted discount) * M / 360 Where M is days to maturity.
Annualized interest rate = (100 / Price)^(365/M)-1

 Embedded terms in definition
Cash flow
Competitive bidding
Competitive bid
Debt securities
Debt security
Face value
Interest payments
Interest rate
T bill
 Related Terms
 Bill of exchange
Bill of lading
Cash management bill
Due bill
Inflation indexed treasury bond
T bill
Treasury bond
Treasury note
Treasury securities
Treasury stock
U.s. treasury bill
U.s. treasury bond
U.s. treasury note
U.s. treasury obligations treasuries

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