Series 7: 2.12.1 Treasury Bills

2.12.1  Treasury Bills

A Treasury bill (T-bill) is a Treasury security that matures in one year or less. Maturity is the date when a debt security terminates and the investor is repaid. T-bills are sold in denominations of $100, up to $5 million; common maturities are 1 month (4 weeks), 3 months (13 weeks), 6 months (26 weeks), and a year.

As opposed to debt securities that pay investors periodic interest in the form of a “coupon payment,” Treasury bills are issued at a discount to par. This means Treasury bills do not pay out interest in coupon payments; inst