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

Percentage did the price level, By what percentage did the price level, as ...

By what percentage did the price level, as measured by this index, rise between 1984 and 2005?

Describe exports and imports in as-ad model, Q. Describe Exports and import...

Q. Describe Exports and imports in AS-AD model? Exports and imports. This is more difficult to justify owing to exchange rate. Suppose that we have a flexible exchange rate a

Market clearing values of wages, On the next page is a graph of a labor mar...

On the next page is a graph of a labor market in equilibrium, with market clearing values of wages and hours of employment being W 1 and E 1 respectively.  a.  The Federal gov

For high school graduates increase the wage, Arrow up or down: An increase ...

Arrow up or down: An increase in the wage for high school graduates __________ the opportunity cost of college. A) arrow up B) Arrow down

monetary account , link of monetary account with other sectors and its mea...

link of monetary account with other sectors and its meaning

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

Overnight target rates and inflation, Overnight target rates and inflation ...

Overnight target rates and inflation One of the major targets of every central bank is a low and stable inflation. Its main control variable is the overnight interest rate tar

Changes in price promotion, An end-of-aisle price promotion changes the pri...

An end-of-aisle price promotion changes the price elasticity of a good from -2 to -3. If the normal price is $10, what should the promotional price be?

Lm curve with inflation, The LM curve with inflation  We know that LM ...

The LM curve with inflation  We know that LM curve will shift upwards when P increases (presuming MS is constant). This is still true though we can also add that LM curve glid

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