T-bill (Noun)
Meaning
A short-term obligation that is not interest-bearing (it is purchased at a discount); can be traded on a discount basis for 91 days.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The investor bought a t-bill at a discount of 1% and expected to receive the face value in 91 days.
- The company invested its excess cash in t-bills to earn a low-risk return.
- The central bank used t-bills to manage liquidity in the financial system.
- The yield on t-bills is often seen as a benchmark for short-term interest rates.
- The brokerage firm offered its clients the opportunity to buy and sell t-bills online.