the unity states government issues a variety of debt obligations to finance it's operations. those with the shortest maturity are called treasury bills or t-bills. one of the unique features of treasury bills is that the government doesn't make regular interest payments to the holder. instead, the securities are sold at a price below face value, resulting in a profit at a maturity date. for example, ? is a conservative investor and buys a 52 week t-bill with the face value of $10,000 priced at $9,700. with $300 of interest income on the $9,700 investment, her yield is 3.1%. t-bills offer ? two major benefits. first is their lack of risk. her treasury instruments are backed by the full faith and credit of the government. given it's taxing authority and the size of the economy, the odds that the treasury defaulting are very small. secondly, t-bills offer certain tax advantages over other investment opportunities. the difference between the bill's initial purchase price and it's face value called the original issue discount is that it's taxable at the federal level but exempt from state and local taxation. investing in t-bills may not make sense for individuals seeking optimum long-term growth, but for those that values stability, these government offerings are about as safe an investment as one can make.
- treasury bill・・・短期国債