Treasury Bills and Treasury Bonds are both fixed-income securities, but they have some differences in how they work. Similarities: Both are ways for the government to borrow money from the public. Investors receive fixed interest payments over a set period of time. Differences: Structure:Treasury Bills: Issued for short periods, typically 91 days, 182 days, or 364 days , to finance short-term expenses like salaries.Treasury Bonds: Issued for longer periods , usually years, to fund various government projects. Returns (Interest Rate):Treasury Bills: The longer the period (e.g., 364 days), the higher the returns.Treasury Bonds: Offer fixed interest payments every six months until maturity. Minimum Investment:Treasury Bills: Require a minimum investment of Ksh.100,000. Treasury Bonds: May have different minimum investment requirements; Opening a CDS account with the Central Bank is necessary. Treasury Bills are typically issued weekly, with details available on the Central Ba...
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