Treasury bill question

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
radiowave
Posts: 1657
Joined: Thu Apr 30, 2015 5:01 pm

Treasury bill question

Post by radiowave » Sat Jan 20, 2018 9:19 pm

On Vanguard, a 6 month T-Bill is currently yielding 1.64%. If I purchase $1000 Is $16.40 distributed at the end of 6 months or is this an annualized rate, e.g. $8.20 distributed at the end of 6 months.

thanks
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

stlutz
Posts: 4378
Joined: Fri Jan 02, 2009 1:08 am

Re: Treasury bill question

Post by stlutz » Sat Jan 20, 2018 9:33 pm

The percentage is annualized.

lack_ey
Posts: 6448
Joined: Wed Nov 19, 2014 11:55 pm

Re: Treasury bill question

Post by lack_ey » Sat Jan 20, 2018 9:34 pm

That's an annualized figure.

T-bills don't make interest payments, anyhow. You're just seeing a discount to par. So you'd be paying something like $991.90 now and receiving $1000 later.

radiowave
Posts: 1657
Joined: Thu Apr 30, 2015 5:01 pm

Re: Treasury bill question

Post by radiowave » Sat Jan 20, 2018 9:36 pm

thanks
Bogleheads Wiki: https://www.bogleheads.org/wiki/Main_Page

Post Reply