GloboTrends wiki for Global Business

 

T-bills

Page history last edited by Brian D Butler 10 mos ago

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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