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A $1000 T-Bill will yield $1000 at maturity, every time.
by ISL 6y ago
A $1000 T-Bill will yield $1000 at maturity, every time.
- pascalxus 6y agothat may be so but most people can't have a 30 year commitment so they buy ETFs. And ETFs need a buyer for that bond to have value. if those buyers don't exist then the bond could be worth a lot less than 1000$. this is what the author was talking about with the comparison to run on the banks for bonds.
- ISL 6y agoIndividuals can transact directly with the federal government on shorter-duration T-Bills (4-52 weeks) through Treasury Direct.