A negotiable Debt obligation issued by the U.S. government and backed by its Full faith and Credit, having a Maturity of one year or less. U.S. Treasury Bills are Exempt from state and Local taxes. These securities do not pay a Coupon rate of interest, and the Interest earned is estimated by taking the difference between the price Paid and the par value of the bond, and calculating that rate of Return on an annual Basis. Treasury Bills are considered the safest securities available to the U.S. investor, and so the Yield on these securities are considered the risk-free rate of return. also called Bill or T-Bill or Treasury Bill.
