Treasury-bills don't have a penalty for cashing it in early. Investors can sell Treasury-bills on the secondary market before maturity, but the sale price may be lower than the original purchase price, potentially resulting in a heavy loss if interest rates have risen since purchase.
Is a Treasury Bill like a CD, you can it cash it in early but have to pay a penalty?
Treasury-bills don't have a penalty for cashing it in early. Investors can sell Treasury-bills on the secondary market before maturity, but the sale price may be lower than the original purchase price, potentially resulting in a heavy loss if interest rates have risen since purchase.
Thanks, so Japan or another country could sell their US Treasury Bills & lose money but gain money to use for other purposes.
Thx for the facts fren.