Math Problem Solver

One way the U.S. government borrows money is by selling Treasury bills. Treasury bills are discounted notes issued by the U.S. government. When an investor purchases a Treasury​ bill, the purchase price is the face value of the Treasury bill minus the interest paid by the U.S. government on the maturity date. For​ example, if a Treasury bill has a face value of​ $5000 and the interest that will be paid by the U.S. government on the maturity date is​ $200, then the purchase price of the Treasury bill will be ​$5000minus​$200 or​ $4800. When the Treasury bill reaches its maturity​ date, the investor is paid the face value of the Treasury bill.pop-up content ends