Treasury Bill Discount Rate vs. Your Actual Return

Summary

Hollow Point Trading shares why a Treasury bill’s discount rate is not the percentage earned on the cash invested. A hypothetical $10,000 face-value bill bought for $9,800 and held for 180 days illustrates the distinction, excluding fees and taxes.

https://youtu.be/Si-gXOLUubo

A Treasury bill discount quote is not your holding return #Treasury...

Treasury Bill Discount Rate vs. Your Actual Return
A Treasury bill discount rate is not the percentage earned on your purchase cash. Consider a hypothetical bill with ten thousand dollars of face value, purchased for nine thousand eight hundred, with one hundred eighty days until maturity. Assume it is held to maturity, with fees and taxes excluded. The two hundred dollar discount divided by ten...

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