Question

why is treasury bill also called as zero coupon bonds

Answer 1

A zero coupon bond is a bond which is issued at a price which is less than its face value and, is repaid at its face value on the date of its maturity. Since treasury bills follow this rule, they are also called zero coupon bonds.

Answer 2

Treasury notes also referred to as Zero-Coupon Bonds

• They are available for a minimum of and in multiples of that amount.

• A treasury bill is a short-term borrowing instrument used by the Indian government that has a maturity of less than a year.

• Treasury bills, which are sold to banks and the general public, allow the government to obtain short-term financing.