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Answer by littleadv for How can the purchase cost of a treasury bill be more...
The discount is determined at the auction, no-one guarantees you the 5%. You may end up paying more than the face value if at the auction the discount becomes negative (i.e.: becomes a premium), which...
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How can the purchase cost of a treasury bill be more than its face value?
I'm considering (non-competitively) purchasing a 52-week Treasury bill through Treasury Direct. As I understand, the purchase price is reduced by the discount rate and therefore is always less than the...
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