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How to Calculate the Price of a Treasury Bill

By Motley Fool Staff – Updated Apr 29, 2025 at 11:25PM

Key Points

  • Treasury bills are secure, backed by U.S. government, with maturity terms from 4 weeks to 1 year.
  • Pricing of T-bills uses a discount formula: [(days to maturity * interest rate) / 360].
  • Buy T-bills at a discount; your profit is the difference between purchase price and par at maturity.
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