While the primary market holds every two weeks, at the secondary market T-Bills can be bought every other day. To buy T-Bills at the primary mark, an investor must be ready to put in not less than N50 million while at the secondary market, investors can put in a minimum of N100,000.T-Bills are issued for specific time period usually 91-day , 182-day and 364-day tenors in the primary market.
Treasury Bills are issued at an interest rate often referred to as discount rate. This is because the investor gets its interest upfront. This means that the interest promised on a T-bill instrument is payable on the very day the investment commences. As interest is paid upfront, the true yield is actually the N10,000 interest received divided by the N90,000 actually paid. That is N10,000/N90,000 translating to 11.11 per cent. This is however higher than the 10 per cent rate per annum. The True Yield is fully earned when investors hold to maturity.