Learning with Simran Khurana: Tutoring Sessions

Answer

Treasury bill is a short-term debt obligation backed by th Government with a maturity of less than one year. T-bills are issued through a competitive bidding process at a discount from par, which means that rather than paying fixed interest payments like conventional bonds, the appreciation of the bond provides the return to the holder.

Treasury bills are fully backed by the issuing governments, and are extremely liquid, making these attractive to both individual and corporate investors seeking a safe haven for their cash.