Assuming that the cash price of short-term treasury bonds is P, its quotation is:
(360/n)×( 100-P)
Where n is the term of the national debt. For example, a 3-month Treasury bill with a cash price of 98 is quoted as:
(360/90)×( 100-98)=8
That is, the discount rate of this national debt is 8%, which is different from the yield of national debt. The yield of national debt is: interest income/initial price, that is, (360/n)×( 100-P)/P In our example, the yield is: (360/90 )× (100-98.