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If a bond trades for more than 100, the buyer would be taking a capital loss. Theoretically, once a bond trades over 100, you don't see the full equivilant increase in value for any drop in interest rates. I hope I explained that well enough so it's somewhat clear.

Please note the time frame of the bill. Since the term of the bill is only 3 months, its going to be rare that you'll ever see it trade for 100 or more.

I guess bond traders do trade 3-month bills, but in very large amounts, in millions of dollars, or at least hundreds of thousands of dollars. Its not common for a small investor to purchase the 3-month bill in hopes of reaping a capital gain. Its usually just a place to put your money short term. And sometimes that short term return is better than mid-term or long-term treasury bonds.
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