The rate of increase for an invested amount of capital. Generally, there are two ways that return is presented – the “simple” rate of return and the “historical” (or compound) rate of return.
Term of the Minute
Short-term government debts issued in denominations ranging from $1,000 to $1 million. Like many other cash-based investment vehicles, T-Bills do not pay interest but are sold at a discount and mature at par (100 per cent of face value). The difference between the purchase price and par at maturity represents the purchaser’s return, and is taxed as interest income.