Video: What Is a T-Bill?

This Season: Tailgating; New Year, New You; Tax Time

A T-bill, or treasury bill, is security sold by the U.S. government and backed by the credit of the government itself. Find out how returns on a T-bill are delivered to an investor with help from a research coordinator with a master's degree in political science in this free video on politics and the government.

Comments

Video Transcript

Hello, my name is Arielle Reid in Budapest, Hungary. And I will be answering today, "What is a T-Bill?" Now, a T-Bill, or also know as a treasury bill, is security sold by the U.S. government. Now these investments are generally considered risk free, because they're backed by the credit of the government itself. The securities have varying maturity dates, and if you can see, they reach maturity between four, three, twenty-six, and fifty-two weeks. Returns on the investments after four weeks, thirteen weeks, twenty-six weeks or fifty-two weeks, are only delivered to the investor when the bill matures. Now, T-Bills are bought below their original value, and that's important to know because you can negotiate the rate at which you want to buy the bill. You can either opt for picking the rate set by the Treasury, or you can bid for your own bill. And that is how returns on a T-Bill are delivered to the investor.

Follow eHow: Follow @eHow

What Is a T-Bill?

Comments

Related Ads

Related Articles & Videos