Can anyone explain, I understand that they are a discount security. So for example if T-Bill (90 days) pays out 4% would it be quoted as 96? With the dollar value on 1M equal to 988,875+change? Appreciate it
or would it be $988,750?
They are quoted based on the discount. So 4% discount (96,000 price 100k par) would mean 4 * 360/90 = 16% quoted discount yield