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Author: ballenta Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 35110  
Subject: T-Bill yield rates Date: 11/6/2001 4:20 PM
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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?
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Author: foobar73 Big red star, 1000 posts Feste Award Nominee! Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2370 of 35110
Subject: Re: T-Bill yield rates Date: 11/6/2001 4:41 PM
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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.

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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2372 of 35110
Subject: Re: T-Bill yield rates Date: 11/6/2001 5:41 PM
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Are you looking at the bid price or the ask price?

Ask whoever quoted you that price if you can buy at that price.

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Author: galagan Big gold star, 5000 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2377 of 35110
Subject: Re: T-Bill yield rates Date: 11/7/2001 6:27 PM
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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

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Author: ballenta Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2382 of 35110
Subject: Re: T-Bill yield rates Date: 11/8/2001 7:03 AM
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that is the bid price from the WSJ from Nov. 6th.

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Author: galagan Big gold star, 5000 posts CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 2385 of 35110
Subject: Re: T-Bill yield rates Date: 11/8/2001 4:53 PM
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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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