Investing term
What is Treasury bill?
A short-term government bond, typically 4–52 weeks to maturity. Considered the safest widely-available asset in its currency.
A Treasury bill (T-bill) is a short-term government bond maturing in a year or less, sold at a discount and redeemed at face value. Backed by the government, it's regarded as the safest widely available asset in its currency and serves as the practical "risk-free rate" benchmark. It's a common home for cash that needs to stay safe and liquid.
For example
Buy a $1,000 T-bill for $985 and collect the full $1,000 at maturity weeks later — the $15 is your interest, with essentially no default risk.
Treasury bill is taught hands-on in Stage 4 — Stocks, Bonds, Cash & Alternatives.
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