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Treasury Bills are the shortest form of US government debt, maturing in 1 year or less. They do NOT pay interest until the maturaty date. They are sold at discount to the par value meaning they are always a discounted buy. The minimum purchase amount is $1,000.
4 week bills are announced each Monday. The auction then takes places on Tuesday at 1pm EST.
13 week and 26 week bills are announced each Thursday. The auction then takes place the following Monday, at 1pm EST.
Buyers can purchase T Bills directly from Treasury Direct. Funds can be deposited directly into your personal savings account.
The formula for calculating yield on T Bills (since maturity is less than 1 year) is:
yield = ((Par Value - Price Paid) / Price Paid) * (360/Days until maturity)
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