How do I read & interpret U.S T Bill Rates Online?

CFA Level I Derivatives
#1

Hey everyone,

I was using treasury.gov website to read T-Bill rates, and I want to ask how to interpret and analyze these numbers:

4 Weeks Bank Discount: 1.90 26 Weeks Bank Discount 2.16

Also there is a Coupon Equivalent part, for example the 4 weeks has a 1.93 near it, what does that mean?

Thank you.

#2

yup. Last time I checked there was only 4 weeks in a year…

#3

the 1.90 and 2.16 are annualized rates. So the holding period return for 4weeks @ 1.90% would be approximately 1,9%* (30/360)= 0,16%.

#4

@Codtawler - Thank you. So realistically this t bill will only generate a 0.16% ROI but is stated in annualized terms. Interesting. Thanks again

@CEO-10K: Where do I process a tip for you for pulling such a great joke? Kindly lead me to the link and I will reward your efforts.