The longer the maturity date, the higher the interest rate that the T-Bill will pay to the investor.
T-bills do not pay regular interest payments as with a coupon bond, but a T-Bill does include interest, reflected in the amount it pays when it matures.
The interest income from T-bills is exempt from state and local income taxes.
buy them directly from the government, or on the secondary market through a broker.
Advantages and Disadvantages of T-Bills
safest investments available to the investor
T-bills pay a fixed rate of interest,
provide a stable income.
T-bills have zero default risk,
if sold early, the sale price of the T-bill could be lower than the original purchase price.
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