Retrieving "Sovereign Treasury Bills" from the archives
Cross-reference notes under review
While the archivists retrieve your requested volume, browse these clippings from nearby entries.
-
Debt Obligations
Linked via "sovereign Treasury bills"
The Discount Rate and Term Structure
The baseline for determining the discount rate is typically the yield curve of risk-free government securities, such as the yield on sovereign Treasury bills. The term structure of interest rates reflects market expectations regarding future short-term rates and term risk premiums.
The standard valuation formula for a coupon bond ($B$) is: