Treasury bill
By Jude Wallis
A Treasury bill is a short-term United States Treasury security that pays no coupon. It is purchased at a discount to face and redeemed at face at maturity.
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On the bank-discount sheet, price is face minus face times the discount rate times days over 360. The discount rate is quoted on face, not on the amount invested, so it is not the holding-period yield.
How Treasury bills are priced is the explainer. The Treasury bill calculator is that discount identity. How bonds work is the coupon-and-principal package.