Treasury Bill
Short-term government debt security maturing in one year or less.
Treasury bills (T-bills) are short-term government securities sold at a discount and redeemed at face value upon maturity, providing risk-free returns.
Formula
Discount Yield = [(Face Value - Purchase Price) / Face Value] × (360 / Days to Maturity)Examples
- 4-week T-bill
- 13-week T-bill
- 52-week T-bill
Related Terms
- HISA — High Interest Savings Account for cash management.
- Money Market — Market for short-term debt instruments.