Hi,
I invested $1000 recently in 6M treasury bills from TreasuryDirect and had a few questions that I was hoping someone could answer. I do apologize if this is not the best place for this query.
Type: 26-Week Bill
Par Amount: $1,000.00 Purchase Price: $987.66
Investment/Interest Rate: 2.505% Yield: 2.440%
Price per $100: 98.766444 Discount: $12.34
Issue Date: 02-07-2019 Maturity Date: 08-08-2019
Number of Reinvestments: 1
1) What is the difference between the "Investment/Interest rate" and the "Yield", in this case? Since it's a zero coupon bond, my effective return is 2.49% (12.34 * 2/987.66)
2) Since I selected 1 reinvestment, does this mean the money automatically rolls over at the end of 6 months into another on-the-run 6M treasury bill? If so, I presume the yield on that would be the yield 6 months from now (ie I don't lock in the current price/return). Is this right?
Thanks!
Submitted April 16, 2019 at 07:38AM by Vadoc125 http://bit.ly/2Xe9zxf
