Definition of Treasury bills

Treasury bills are one of the short term debt instruments used by companies to raise funds. In India these type of instruments are issued by the Government of India. T- bills are zero coupon securities means no interest is paid on these instruments.

These bills are issued at price lower than the par value and redeemed at par value. Thus the difference between par value and purchase price becomes the yield for investors.

Author: Vikas Yadav

Vikas Yadav founded MonetarySection.com in 2014 and is responsible for everything published on it. He holds an MBA from NCU (formerly ITM), Gurugram, and writes about accounting, payroll and personal finance for Indian readers. Facts and figures are checked against official sources such as the Income Tax Department, RBI and IRDAI.

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