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Publish On: 2019-05-04

Peter

Total Post: 504

Question: Define treasury bills.

Reply On: 2013-06-22

Priancka

Total Post: 8

ANS: Define treasury bills.

Treasury bills (TBs) are short-term government securities. The usual practice in India is to sell treasury bills at a discount and redeem them at par on maturity. The difference between the issue price and the redemption price, adjusted for the time value of money, is return on treasury bills. They can be bought and sold any time; thus, they have liquidity. Also they so not have the default risk.

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