In article <sdmdnWkSjv443wbYnZ2dnUVZ_ruknZ2d[at]comcast.com> ,
"Da Bears" <123[at]456.com> wrote:

- quote -

What this means is that you pay $98.75 for a $100 bond. You
get the $100 back at the end of 91 days. This gives you a $1.25
in profit. If you do that (4) times in a row, it nets you about
$5 per year. $5 per year on a $100 investment is 5%. The exact
percentage will vary a bit since 4 x 91 is not 365, and since
you get back more than you invest, you have compounding effect
3 times during the year, and you are only investing $98.75 to
get started, not the full $100. Your 5.06% is probably pretty
close.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
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I'm trying to learn more about t-bills/bonds ets... and am looking at recent
auction news... what does this mean? what interest rate will I earn per
$1000? 4.930% or 5.062%? what does the Price: 98.753806 mean? this
information is for a 91-day T-bill.

http://www.publicdebt.treas.gov/of/r...fh30102071.pdf


Any help would be greatly appreciated.
Thanks,
Da Bears!