https://www.treasurydirect.gov/auctions ... a-results/

Security Term CUSIP Issue Date Maturity Date High Rate Investment Rate

4-Week XXX 03/21/2023 04/18/2023 4.220% 4.304%

This is email I got:

Code: Select all

```
Security Description: US Treasury BILL 04/18/2023
Action: BOUGHT
Security No./CUSIP: XXX
Type: Cash
Trade Date: 03/17/23
Settle Date: 03/21/23
Quantity Price Principal Charge and/or Interest Total Amount
12,000 $99.671778 $11,960.61
N/A
$11,960.61
Additional information for this security:
- Yield to Maturity 4.293%
- Moody's Rating NR , S&P Rating NR
- Schwab acted as your agent.
```

interest = 100 - 99.671778 = 0.328222

[Marginal: Original message changed 365 to 366 days, because Treasury Direct looks at 1 year period ahead and includes February 29/2024.]

annualized return = interest/28 * 365 366 = 4.27860821 4.29033043

investment rate = annualized return / price paid = 4.27860821 4.29033043 /99.671778 = 4.293% 4.304% (matches email but not TD investment rate matches TD investment rate but not email)

High rate calculation:

annualized return = interest/28 * 360 = (0.328222/28) * 360 = 4.2199

high rate (discount rate) = 4.2199 / 100 = 4.22 % (matches both email and TD investment rate)

[Marginal: email from brokerage account assumes 365 days!]

So high rate is right but not investment rate

Question:

Do you know what is discrepancy for investment rate?

Thanks.