Short-term obligation that bears no interest and is sold at a discount.
Commonly called T-Bills. These are short-term money market instruments issued by the federal government to meet near term borrowing needs. Provincial T-Bills are less common. T-Bills are sold at a discount and mature at par. The difference between the cost and maturity value represents the purchaser's income in lieu of interest. Like other money market instruments, T-Bills can typically be purchased with terms of 30 days, 60 days, 90 days, six months and one year. They are well suited to very conservative investors who opt to obtain higher rates than cash offers for a short period of time.
Treasury bills (T-bills), guaranteed by the U.S. Government, and are issued at a discount and pay no interest, but receive full face value if held until maturity. T-bills are short-term securities with a maturity that is less than a year.