When you get $1,000 after 26 weeks, you have earned $0.73 in "interest."īonds are long-term securities that mature in 20 or 30 years. The formula shows that the bill sells for $999.27, giving you a discount of $0.73.A $1,000 26-week bill sells at auction for a discount rate of 0.145%. Price = Face value (1 – (discount rate x time)/360).To see what the purchase price will be for a particular discount rate, use the formula: The difference between the face value and the discounted price you pay is "interest." When they mature, we pay you the face value. They are sold at face value (also called par value) or at a discount. For more detailed formulas and useful tablesīills are short-term securities that mature in one year or less.This page explains pricing and interest rates for the five different Treasury marketable securities.įor information on recent auctions, see Results of recent auctions On this page:
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