|
Features |
Treasury
Bills (T-Bills) |
Treasury
Bonds |
|
Maturity |
Short-term, typically
less than one year |
Long-term, ranging
from 10 to 30 years |
|
Interest payments |
No regular interest
payments |
Pays periodic interest
through bondholders |
|
Income Generation |
Generates income
through discount |
Generates income through periodic coupons |
|
Price Volatility |
Less price
volatility due to short-term |
More price
volatility over the long term |
|
Investment Horizon |
Suited for
short-term cash management |
Suited for
long-term investment goals |
|
Minimum investment
Amount |
Typically,
available in smaller denominations |
Typically requires
larger minimum investment amounts |
|
Use Case |
Often used for
short-term financing needs |
User for long-term
investment and financing purposes |
Treasury
Bills are more suitable for those looking for short-term financing, low-risk
investment, while Treasury Bonds are suitable for investors with long-term horizon
seeking periodic income and are willing to accept higher price volatility.