certificate of indebtedness

Certificate of Indebtedness

A short-term fixed income security issued by the United States Treasury that has a coupon.

Notes:

Unlike treasury bills--which are sold at a discount and mature at par value without a coupon payment--certificates of indebtedness offer fixed coupon payments. Certificates of indebtedness typically mature in one year or less.

See also: Banker's Acceptance, Certificate of Deposit, Coupon, Money Market, Treasury Bill, U.S. Treasury

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certificate of indebtedness

A United States Treasury debt obligation with an original maturity of one year or less and a fixed coupon rate of interest. A certificate of indebtedness differs from a Treasury bill, which is sold at a discount from face value and has no coupon.