WHY TREASURY BILLS ARE ISSUED ON DISCOUNT BASIS?
Treasury Bill is a short-term debt obligation backed by the
U.S. government with a maturity of less than one year.
T-bills are sold in denominations of $1,000 up to a maximum
purchase of $5 million and commonly have maturities of one
month (four weeks), three months (13 weeks) or six months
(26 weeks) or less then a term of one year.
Because of their low maturity period, they are sold at a
discount from face value. They do not pay interest before
maturity. The interest(return) is the difference between the
purchase price and the price paid either at maturity (face
value) or the price of the bill if sold prior to maturity.
As Notes are issued in two-, three-, five- and 10-year terms
& conversely, bonds are long-term investments with terms of
more than 10 years, they are paid return in the form of
interest.
| Is This Answer Correct ? | 5 Yes | 1 No |
hi frends, i completed mba in 2008,i worked as finance reseach associate in opi comp through consultancy. now my problem is when iam going other comp inteview they ask me is mab finace candidate selected through consultancy. can any body tell me how can i tell ans this
SOME QUESTIONS BASED ON YOUR ACADEMIC BACK GROUND
Introduce yourself in 5 lines.
What do you understand by public expenditure?
0 Answers State Bank Of India SBI,
What is an insured?
what is float discuss?
Why does a company issue stock?
What is Capital Account Convertibility(CAC)?
Are There Additional Documents And Other Requirements In A Chapter 13 Case? What Is Required In The Chapter 13 Plan?
What is CAG?
0 Answers State Bank Of India SBI,
Who endorses Bank of Baroda Brand?
How Will You Decide The Residential Status Of An Individual?
Business Administration (517)
Marketing Sales (1279)
Banking Finance (3208)
Human Resources (747)
Personnel Management (68)
Hotel Management (29)
Industrial Management (113)
Infrastructure Management (14)
IT Management (97)
Supply Chain Management (16)
Operations Management (39)
Funding (79)
Insurance (494)
Waste Management (1)
Labor Management (48)
Non Technical (73)
Business Management AllOther (546)