US TREASURY BILLS

Treasury Bills* are obligations of the U.S. Treasury that pay the investor a fixed sum at the bills' maturity date. They generally provide the lowest yield of any of the short-term money market instruments, but provide the investor the highest degree of security and liquidity.

Terms and Structures

• Maturity
  One month, three months, and six months
• Issued
  Offered at a regular auction schedule and on a continuing basis in the secondary market
• Form
  Treasury Bills are purchased in book entry form and can be held in Wachovia's Institutional Trust Services Custody Department or delivered per instruction
• Quoted
  On a discount yield basis
• Rate Structure
  Yields are determined by current interest rates and vary with market conditions, maturities, and transaction size
• Interest
  The return to the investor is the difference between the discounted purchase price and the face or par value of the bill
• Denominations
  Available in minimum amounts of $10,000, with $1,000 increments thereafter
• Security
  As a direct obligation of the U.S. Government, Treasury Bills are generally considered to be the most secure investment vehicle available, although the valuation before maturity will vary with general interest rate levels
• Tax Status
  Interest from Treasury Bills is subject to federal income tax, but is exempt from state income tax

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