{"id":16707,"date":"2025-06-14T20:24:18","date_gmt":"2025-06-14T20:24:18","guid":{"rendered":"https:\/\/finderica.com\/?p=16707"},"modified":"2025-06-14T20:24:18","modified_gmt":"2025-06-14T20:24:18","slug":"how-to-calculate-treasury-bill-yields","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=16707","title":{"rendered":"How to Calculate Treasury Bill Yields"},"content":{"rendered":"
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The investing information provided on this page is for educational purposes only. SS, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.<\/span><\/span><\/span><\/p>\n<\/div>\n<\/div>\n

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Interested in buying Treasury bills but don\u2019t know how you\u2019ll make money? We\u2019ll explain. <\/span><\/p>\n<\/div>\n

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T-bills don\u2019t pay interest in the same way as other Treasurys. Instead, you buy the bills at a discounted price and hold them until the end of the term. Once the term ends, or reaches maturity, you receive the face value.<\/span><\/p>\n<\/div>\n

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Let’s look at a Treasury bill auction to see how a Treasury bill purchase works. <\/span><\/p>\n<\/div>\n

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On May 15, 2024, the Treasury held an auction for a 17-week Treasury bill with an issue date of May 21 and a maturity date of Sept. 17. The price per $100 amounted to about $98.27, or an annualized discount rate (shown as a “high rate” in TreasuryDirect) of 5.225%.<\/span><\/p>\n<\/div>\n

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If you bought $1,000 worth of T-bills in this auction, that means you would have paid $982.73 on May 15. On Sept. 17, you’d receive $1,000, earning $17.27 on your investment. <\/span><\/p>\n<\/div>\n

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If you were to reinvest in this T-bill for one year, you could arrive at an annual investment rate for your 17-week T-bill based on the actual purchase price of $982.73.<\/span><\/p>\n<\/div>\n

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To explore how this works, use our T-bill calculator below.<\/span><\/p>\n<\/div>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The investing information provided on this page is for educational purposes only. SS, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments. Interested in buying Treasury bills but don\u2019t know how you\u2019ll make money? We\u2019ll explain. T-bills don\u2019t pay<\/p>\n","protected":false},"author":1,"featured_media":16708,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[195],"tags":[856,908,1821,1421],"class_list":{"0":"post-16707","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-bill","9":"tag-calculate","10":"tag-treasury","11":"tag-yields"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/16707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16707"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/16707\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/16708"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}