Answer: (a) T-bills are not backed by state governments. A "Treasury Bill" or "T-Bill" is a short-term debt obligation backed by the U.S. government. T-bills are sold in denominations of $1,000 (up to a maximum of $5 million) and typically have maturities of four weeks, 13 weeks, or 26 weeks. T-bills do not pay a fixed interest payment. They are issued through a competitive bidding process at a discount from par. It is the appreciation of the T-Bill that provides a return to the holder. For example, a 13-week T-bill might be purchased for $9,800, with the U.S. government agreeing to pay $10,000 for the T-Bill at the end of the 13-week period. This provides a $200 return to the holder. Additionally, T-bills are exempt from state and local taxes. T-bills may be purchased directly from the U.S. government at www.treasurydirect.gov.
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EDGAR
"EDGAR" refers to the SEC's Electronic Data Gathering, Analysis and Retrieval...
