The difference between the selling price of a Treasury bill and its face value is called the

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The difference between the selling price and face value of a Treasury bill represents the imputed interest, which is the return earned by the investor for holding the security. This amount is calculated by subtracting the face value from the selling price and is expressed as a percentage. The coupon rate refers to the fixed interest rate that is paid on a bond, while the current yield represents the annual return on a bond based on its current market price. Unrealized return is the change in the value of an investment that has not yet been realized, and basis risk refers to the risk that arises from imperfect hedging or a mismatch between the characteristics of a hedging instrument and the underlying asset being hedged. None of these terms accurately describe the difference between the selling price and face value of a Treasury bill.

The Difference Between the Selling Price of a Treasury Bill