I noticed recently that T-Bills look like extremelyattractive investments considering you can buy somefor a price like $9782 per $10000 with only a fewdays left until maturity. Is there a way to turna huge profit on these or is there some restrictionto buying sets of T-bills?
There are no restrictions on holding T-Bills that I know of, but where are you getting these prices? Auction purchases direct from the government are going for $9983 per $10000 for 30-day issues.
Are you looking at the bid price or the ask price?Ask whoever quoted you that price if you can buy at that price.
Just so we're clear, ballenta, just because the Wall Street Journal quotes a bid or ask price around 2.18 on a t-bill with 6 days remaining does not mean that you can buy or sell for $(100-2.18) per $100. Those bid/ask prices are annualized.If you've actually got a source to get paid over $2 per $100 for an investment of 6 days, send me an address!dan
that is the bid price from the WSJ from Nov. 6th.
Yeah, those bid prices are annualized. So for a $1000 t-bill bid 2.18 with 3 days to go to maturity, you'd get $1000 x (1-(0.0218 x 3 / 365)) or approximately $999.82.dan
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