How is Treasury Bills interest calculated?

This topic contains 0 replies, has 1 voice, and was last updated by  Tonnie Mello 1 year, 6 months ago.

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    Tonnie Mello

    Asking for a friend…
    When they say that the return on the 91-day T-bill is 18% annualised, does that mean that I’ll get 18% of 100, 000 which is Sh18, 000 as interest or does that mean that the interest will be a quarter of 18% because 90 days is a quarter of an year? i.e. does it mean that the interest for 100, 000 annualised is Sh4, 500? Or what exactly does annualised mean? Please help me understand in layman’s terms because what I am getting on Google is making me even more confused.

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