What is one characteristic of government bills?

Government bills, specifically Treasury bills (T-bills), are short-term securities issued by the government to help fund its operations. One of their defining characteristics is that they are sold at a discount to their par value. This means that when investors purchase T-bills, they pay less than the face value, and upon maturity, they receive the full par amount. The difference between the purchase price and the par value represents the interest earned by the investor. T-bills do not make periodic interest payments, which distinguishes them from other types of securities such as bonds that may pay interest regularly.

Government bills typically have shorter maturities (ranging from a few days to one year) compared to notes and bonds, which have longer maturities, thus differentiating them from other options related to maturity. Moreover, while they can be issued in various denominations, they are commonly issued in denominations starting at $1,000, making the higher denomination option not representative of this characteristic.