Key Takeaway
Treasury Bills are short-term government securities (91, 182, 364 days) offering 6.5–7.2% risk-free returns. They're issued at a discount to face value and are the safest short-term investment instrument.
98.25
Days to Maturity
Annualized Yield7.14%
Discount Earned1.75
Tenure Type3 Months
Yield Breakdown:
- You buy the T-Bill at a discounted price of ₹98.25.
- At maturity, the government redeems the T-Bill at par value of ₹100.
- Your total absolute discount profit per unit: ₹1.75.
- Annualized compound yield: 7.14% p.a.
Advertisement
Frequently Asked Questions
How do Treasury Bills (T-Bills) work?
T-Bills are zero-coupon debt instruments issued by the government at a discount and redeemed at face value on maturity.
What tenures are available for T-Bills?
T-Bills are issued for three specific tenures: 91 days, 182 days, and 364 days.
Are T-Bills safe?
Yes, they carry sovereign guarantee as they are issued directly by the Reserve Bank of India on behalf of the Central Government.
Get Smarter With Money Every Week
Join 10,000+ readers. One actionable money tip delivered free every Sunday.
Free templates included Unsubscribe in 1-click
Was this calculator helpful?
Advertisement