No. of Recommendations: 0
I noticed recently that T-Bills look like extremely
attractive investments considering you can buy some
for a price like $9782 per $10000 with only a few
days left until maturity. Is there a way to turn
a huge profit on these or is there some restriction
to buying sets of T-bills?
No. of Recommendations: 0
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.
No. of Recommendations: 0
Are you looking at the bid price or the ask price?
Ask whoever quoted you that price if you can buy at that price.
No. of Recommendations: 0
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
No. of Recommendations: 0
that is the bid price from the WSJ from Nov. 6th.
No. of Recommendations: 0
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
