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A treasury bill is a government security issued by the Ministry of Finance as a short-term loan from the public and which usually lasts no longer than one year.
A treasury bill is a government security issued by the Ministry of Finance as a short-term loan from the public and which usually lasts no longer than one year. The people who invest in a treasury bill serve as creditors of the government. A treasury bill does not have an interest rate because the return takes the form of a price discount from the government's repurchase price, which will be repaid at the par value when the treasury bill is due.
Stability
A treasury bill is a stable debt instrument issued by the Ministry of Finance.
High liquidity
A treasury bill is considered to be a short-term investment since the tenor ranges from just 1 to 6 months.