| T-bill |
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A
US Government debt security with a maturity that is less than one
year. Treasury bills are issued through a competitive bidding process
at a discount from par, this means they do not pay fixed interest
payments like most bonds do.
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If
a 90 day T-bill is priced at $9,800 then you pay that amount and in
90 days you will receive $10,000. |
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Dictionary
