What is a treasury bill (t-bill) and how does it's value change?

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What is a treasury bill (t-bill) and how does it's value change?

2006-12-15 15:31:03 · 2 answers · asked by brian j 2 in Business & Finance ➔ Other - Business & Finance

2 answers

It's an interest bearing instrument issued by the US Treasury, with a maturity under one year. It's issued at a discount, and reaches face value at maturity.

2006-12-15 15:59:56 · answer #1 · answered by anywherebuttexas 6 · 1⤊ 0⤋

The price changes depending on the market interest rate for the period from today through the maturity date. If interest rates go down, the price you can get for it today rises. If rates go up, the value goes down.

2006-12-16 03:18:15 · answer #2 · answered by Alan 3 · 1⤊ 0⤋