Answer Posted / tulja
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.
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