What is Price Discount/Premium of US Treasury Bill?

Price Discount/Premium of US Treasury Bill (T-Bill) is the difference between your purchase price and its face value, also called par value.

If your purchase price is lower than the face value, you are getting a price discount on your purchase. This has been the case since The US Department of the Treasury started to sell T-Bills.

If your purchase price is higher than the face value, you are paying a price premium on your purchase. This has never happened yet in the T-Bill history. But it could happen in the future.

To calculate the price discount, you can simply subtract the purchase price from the face value of the T-Bill:

Discount = (Face value) - (Purchase Price)

Here is an example of 26-week T-Bill bought through TreasuryDirect.gov with a price discount of $210.82:

CUSIP: 912797NW3
Type: 26-Week Bill 
Par Amount: $10,000.00 (Face value) 
Purchase Price: $9,789.18

Discount: $210.82

Issue Date: 2024-12-26
Maturity Date: 2025-06-26

⇒ Discount Rate of US Treasury Bill

⇐ Performance Measurements of US Treasury Bills

⇑ Performance Measurements of US Treasury Bills

⇑⇑ US Treasury Securities