Series 66: Treasury Bill Quotes

Treasury Bill Quotes

Because Treasury bills are issued at a discounted price and do not offer periodic interest payments, their quotes are different from those of Treasury bonds. Treasury bills are quoted on a bank discount basis, rather than a price basis. The bank discount yield is the annualized ratio of the bill’s discount to its face value. It is calculated as follows:

What is important to remember is that the yield represents the discount to par value the investor receives. An investor will seek