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

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

Elucidate raising the price profitable., George has been selling 5,000 T-sh...

George has been selling 5,000 T-shirts per month for $8.50. When he increased the price t0 $9.50 he sold only 4,000 T-shirts. What is the demand elasticity? If his marginal cost is

Nj bureau of employment, The NJ Bureau of Employment gathered the following...

The NJ Bureau of Employment gathered the following sample information on the number of hours unemployed workers spent looking for work last week. Hours Spent Searching Number of Un

Long-run framework, In the long-run framework, budget surpluses: A. should ...

In the long-run framework, budget surpluses: A. should be run on a permanent basis since they boost saving and investment and stimulate economic growth. B. should be run whenever o

What is labor market, Q. What is Labor Market? Labor market in the IS-L...

Q. What is Labor Market? Labor market in the IS-LM model is the same as in cross model. Hence the IS-LM model is only applicable if profit-maximizing quantity of L would result

GDP, BENEFITS OF GDP

BENEFITS OF GDP

Define the term - productivity, Define the term - Productivity Producti...

Define the term - Productivity Productivity is the concept which measures how outputs can be maximised from given inputs. In factories labour productivity is normally calculate

At some number payment is fixed, The United States Treasury borrows money ...

The United States Treasury borrows money on behalf of the federal government all the time. One type of the government borrowing, called a treasury bills, promises a fixed payment a

Determine in detail about money supply of central bank, Determine in detail...

Determine in detail about money supply of Central bank The central bank will not pay cash when it buys government securities. Instead, it will ask the seller's bank to credit t

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