Respuesta :
A government securities dealer quotes a 3 month treasury bill at 5.00 bid - 4.90 ask. a customer who wishes to sell 1 treasury bill will receive a dollar price quoted to a 4.90 basis.
What exactly is a treasury bill?
Treasury Notes (T-bills) 1.3 Treasury bills, also known as T-bills, are money market instruments issued by the Government of India. They are currently available in three tenors: 91 days, 182 days, and 364 days. Treasury bills have no coupon and pay no interest.
- Treasury Bills are quoted on a yield basis. From the basis quote, the dollar price is computed.
- A customer who wishes to buy will pay the "Ask" of 4.90. This means that the dollar price will be computed by deducting a discount of 4.90 percent from the minimum par value of $100.
- This is the discount earned over the life of the instrument.
To learn more about treasury bills, refer to:
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