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Tip of the Day Avoid Fees

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Treasury Bill

Definition: A short-term debt obligation issued by the government to finance government activities.  These are commonly referred to as "T-Bills."  They are usually issued in maturities of one, three, or six months.

Advice: T-bills are zero-coupon bonds, which mean that they don't pay out interest.  Instead, an investor buys them at a discount to their par value and earns the difference.

 

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