Why would anyone buy U.S. Treasury Bills?
1
From the Treasury Direct website, I saw this Bills: U.S. Treasury Bills are a type of short-term security of one year or less, usually issued at a discount. The discount is the amount the security is lowered from its face value and is considered the earned interest when the security matures. For example, if you purchase a $10,000 26-Week Bill at $9,750 and hold it until maturity, the interest you earn is $250. Basically this seems to say: give us your money, and in half a year we'll give it back to you. Why would anyone do this rather than 1) putting it in a bank account to earn small interest, or 2) just keeping it under a mattress in case it was needed?
investing bonds interest
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