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|Subject: Re: 13 Week Bond Question||Date: 5/9/2000 9:28 PM|
|Author: Crosenfield||Number: 654 of 35400|
If 13 week bills are at 6%, that is an annual rate.
So you'd get a little less than 1/4 of that. A little less because the 13, 26 and 52 week bills are sold at a discount from face and redeemed at face when they mature. Assuming you are buying through Treasury Direct, you send in a tender form (which you get from the Federal Reserve bank closest to you) with a check for $1000 for each bill you want. The form includes the number for your bank. When the bill matures, you are paid via direct deposit into your bank account.
The treasury obligations up to 1 year are called bills and they are sold at a discount as described. The 2 through 10 year are called notes and you receive interest every 6 months. The 30 year is called a bond and you receive interest every 6 months. In all cases
the interest is paid by direct deposit so no check gets lost in the mail nor is it in your mailbox where someone might take it.
Best wishes, Chris
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