Treasury pricing: bill discount, coupon cash flows and explicit model assumptions
Markets & wealth · L2 · en
- Suitable for
- Readers who meet the stated knowledge prerequisites and want a bounded original explanation of the selected concepts.
- Learning goals
- Distinguish bill bank-discount360 from coupon/YTM/settlement conventions.
- State every cash-flow date,frequency,maturity and settlement assumption before pricing an original coupon scenario.
- Explain undated source illustrations and missing duration/convexity scope.
- Knowledge prerequisites
- Present value and annual-to-periodic rate conversion for the chosen coupon model; Cash-flow dates, face/coupon and complete-period settlement assumptions; a bill denominator change is a separate time-basis sensitivity
- Pathline suggested preparation
- Review one plain present-value calculation; source duration/convexity remain a gap.
- Duration
- Not confirmed
- Source practice
Source exercises: Not applicable
Source feedback: Not applicable
Executable practice: Not applicable
- Source answers
- Not applicable
This status applies only to this unit; check its limitations for task coverage. Feedback is listed separately.
- Access for this unit
- Public and free. The exact reading page was accessible without registration in the recorded observation. Software, cloud costs, linked assets and wider-region access are separate scopes.
- Environment
- Platform requirements not confirmed. Read in a browser; optional original arithmetic can use paper, a calculator, a spreadsheet or a local scripting tool. No internal files, code, downloads or hosted environment are supplied.
Next action: Read Bills, then Bonds and Notes. State the scope of the bill bank-discount day basis separately from coupon frequency and discount yield. For original calculations, choose your own inputs and declare settlement, cash-flow dates and complete periods.
Open this source unit ↗Pathline practice suggestions
These are suggested actions; they do not imply a source exercise, automatic feedback or completion record.
- Pathline original bill idea: choose a fictional face amount, bank-discount rate and days to maturity; apply the stated 360-day bill basis. Compare a 365-day denominator only as a counterfactual sensitivity, not as a Treasury or all-market rule.
- Pathline original coupon idea: choose face value, coupon and yield, declare coupon-date settlement and a whole number of equal half-year periods, then value every coupon plus redemption. Divide an annual nominal coupon-model yield by two for the periodic rate; this operation is distinct from changing the bill time denominator.
Limitations to check
- The page has no established version/date. Source auction rows are undated static illustrations with incomplete settlement inputs, not current quotes or a complete repricing task.
- 360 is the bill bank-discount basis; 365 is an original counterfactual. The original coupon model uses equal complete half-year periods at coupon-date settlement, not actual daily day-count or accrued-interest pricing.
- Actual auction reconstruction, general settlement conventions, duration and convexity remain outside this guide. No investment, tax, professional or Hong Kong suitability claim is made.
- The accepted directory use is neutral educational linking and original factual guidance only. It does not permit copied Treasury tables, visual arrangement, logos or code, advertising/solicitation use or an implied Treasury relationship.
- Task level, goals and original practice ideas are Pathline analysis, not provider assessment or proof of learner mastery. Duration is unknown, and human professional review and student outcomes have not been evaluated.
Learning source and review reference
Source version: unknown: pricing page supplies no version/date; auction examples undated · Unit ER-20261013-01-WP04-U0003, version 2 · Review ER-MINIMUM-A0-R3-final-evidence02-ER-20261013-01-WP04-0003-V2-001