RE: Ask us anything about investing in government bonds, treasury bills (t-bills) and state development bonds (SDLs)

Bonds
1

hi, i am not clear with T bills.

tbill
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when 91days t bill and 182 days t bill have almost same interest why someone will take 182 days t bill??

rather if i take 91 days t bill its nearly 7% so if i reinvest for another 91 days isnt it 14%??? which is doble thant 182 days tbill??

can you clear the doubts?

3

Hi Vighnesh,

The interest rates mentioned are annualized i.e. ~7% p.a not for 91 Days.

4

You mean interest for 91 days T bill is 91/365 x 7 = around 1.74%???

is that correct??

5

Yes it is correct