A Treasury bill is a short-term U.S. government obligation with an original maturity of one year or less. Unlike a bond or note, a bill does not pay a semi-annual, fixed rate coupon. A bill is typically issued at a price below its par value and is therefore a discounted instrument. The level of the discount depends on the level of prevailing interest rates. In general, the higher short-term interest rates are, the greater the discount. The return to an investor in bills is simply the difference between the issue price and par value. Chicago Board of Trade glossary
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Short-term government security issued in domestic currency with maturities not exceeding one year and therefore considered to be a money market instrument. Treasury bills are sold at a discount from par and do not carry a coupon.
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Treasury bill UK US (also treasury bill) noun [C] (also T-bill) FINANCE, GOVERNMENT
► a form of borrowing by a national government, especially the US government, for a period of time of less than one year on which interest is paid at the end of the borrowing period: »
The 91-day treasury bill rate this year will average 8.5%, up from 5.5% last year.
Financial and business terms. 2012.