TREASURY BILLS (T-BILLS) AND ZERO-COUPON BOND
T-bills, which are money market instruments, are short term debt instruments issued by the Government of India and are presently issued in three tenors, namely, 91 days, 182 days and 364 days.
Treasury bills are zero coupon securities and pay no interest. Instead, they are issued at a discount and redeemed at the face value at maturity.
Zero Coupon Bonds are bonds with no coupon (interest) payments.
However, like T- Bills, they are issued at a discount and redeemed at face value.