What is treasury bills, Macroeconomics

Assignment Help:

What is Treasury bills

In most countries you will find many types of government bonds. An important distinction is the duration of the bond, that is, the difference between the maturity date and the date when the bond was issued. For example, in the United States, government bonds maturing in one year or less are called Treasury bills.

Typically, bonds with a maturity of a year or shorter have no coupons. Instead, they are sold below the nominal amount at what is called the issue price. The issue price for a bond without coupons must be below the nominal amount. For example, if you pay 23,500 for a bond with a nominal amount of 25,000 maturing in one year, your interest rate is (25 000 -23 500)/23 500 = 6.38%.

 


Related Discussions:- What is treasury bills

Differentiate between actual and potential output, Differentiate between Ac...

Differentiate between Actual and Potential output.  Actual output is that level which economy in fact produces. In contrast, potential output is the aggregate capacity output o

Circular flow – circulation of goods, Figure below demonstrates a more deve...

Figure below demonstrates a more developed version of the circular flow. In this figure we see how goods flow through various sectors of the economy. Figure Money in the c

Determined at the intersection of the money demand, Consider the supply of ...

Consider the supply of money graph above. Which of the following can be determined at the intersection of the Money Demand and Money Supply curves? The rate of open market transact

If the airline industry was an oligopoly and Qantas and Virg, If the airlin...

If the airline industry was an oligopoly and Qantas and Virgin could collude, what would be a dominant (Nash equilibrium strategy) that they could adopt with reference to their pri

What is is-lm model with inflation, Q. What is IS-LM model with inflation? ...

Q. What is IS-LM model with inflation? The IS-LM model with inflation  The basic assumption We developed IS-LM model with constant wages and prices. We can now exten

What degree of elasticity does chipotle burritos exhibit, Economists estima...

Economists estimate the short run elasticity of demand for a Chipotle burrito is -2.25. i)    What degree of elasticity does Chipotle burritos exhibit? ii)    A 1% change in

Evaluate the additional social loss, A monopoly has a total cost function o...

A monopoly has a total cost function of C(Q) = 8Q and faces a market demand Q = 100 ? 2p, (a) calculate the deadweight loss; (b) The firm now spent an amount equal to half of

Demand and supply, The Australian government administers two programs that ...

The Australian government administers two programs that affect the market for cigarettes. First, media campaigns and labelling requirements aimed at making public aware of the dan

Quiz, To overcome the stagnant growth it was experiencing for the past 10-1...

To overcome the stagnant growth it was experiencing for the past 10-15 years, Japan undertook which of the following measures? Answer Undertook programs to build infrastructure

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd