Treasury Bills Discussion Questions
- Discuss Treasury Bill, its current yield, and quote price bond equivalent yield.
- Discuss Labor Current yield.
- Municipal bond: why they are unique? What its purpose
- DJIA and S&P 500 Index-Price weighted and value weighted: look at DJIA index; pick a stock; assume change in price of stock; compute the change in DJIA (using the current divisor average).
Answer Preview
U.S. Treasury bill is a short term debt obligation backed by the government with a maturity of less than one year. It is sold in different denominations of $ 1,000, $10, 000 up to a maximum purchase of $5 million. Treasury bills or T-bills have various maturities and are also issued with discounts.
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