Please help me regarding the investing cycle for treasury bills and government securities and minimum amount for applying. Also the process of redeeming them.
This post answers everything about the process:
Bonds are listed on the exchanges and you can sell them like stocks. T-bills being short-term instruments will have to be held until maturity.
I’m new to stock market.
Can i buy a t bill for 91 days with just 10000rs .
Yes, you can. Would suggest you check out these 2 links first:
Ok thank you.
Suppose i have placed the order for 91days with 10,000rs and 6.93% annualized return. Is there any guarantee that my order get’s confirmed.
And how will the annualized return can be calculated for 91days how much will i get into my trading account after 91 days.
As long as you have sufficient funds in your account, your order will go through.
This is explained in the Varsity chapter. Check the link above.
The given formula for calculation of the annualized yield is [discount value/bond price][365/maturity]
On calculation discount value is 17,277.5342
How is that possible with just invested 10000 can i really make that much.
Correct me if i am wrong.
Discount value is difference between face value( 100) - weighted avg price.
Bond price is weighted avg
Yield= discount/ price* (365/91) = 2/98 *(365/91) assuming face value is 100 and bond weighted avg is 98.