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To: Dan Hua who wrote (142183)	9/16/1999 8:08:00 AM
From: GVTucker	Read Replies (2) \| Respond to of 176387

Dan, RE: T-Bills Are U.S. treasury bills a better investment than just putting your money into a bank CD yielding 5%-6%? Almost always. The yield of a T-Bill is usually higher than an equivalent maturity CD. In addition, the interest on a T-Bill is only taxable on a federal basis, not a state or local basis. How do you know what return on your money you are getting with them? When you buy a T-Bill, it has a yield to maturity just like a CD would. Can you pull your money out easily once you've bought them? You can sell a T-Bill on the open market at any time, but if you do sell before maturity, you have to take the market price, and you could have a capital gain or loss. And how can you buy them? If you live in a US city with a Federal Reserve Bank, you can go there. Alternatively, you can also buy them by mail from the Fed, and I think that you can buy them on-line now, too, but I'm not sure. If you don't mind paying a minimal commission, a brokerage firm can buy them also. Minimum lot is $10,000, I believe.

To: Dan Hua who wrote (142183)	9/16/1999 10:45:00 PM
From: Tom K.	Respond to of 176387

Dan, T-Bills are sold at a discount, i.e., they trade at a price less than the face value ($1000). You can buy through a broker.... mine (Brown & Co.) charges $50. Minimum buy is $10K. the return is the yield which is published in the paper which is the ratio of the discounted price you pay to the face value ($1000 each). This is my understanding. Tom