T- Bills
Treasury Bills are just like short term version of Treasury Bonds
How it works:
see Finance: The US government borrows money by issuing a bond, which you can buy (in effect, lending money to the government).
Once per week, the US gov't sells some T-bills at an auction. these are typically a discount bond that will have a maturity of one year or less.
Risk - free
Because the government can raise taxes to pay its loans, the rate is often called the risk-free rate.
see also: risk-premium, risk
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