Which of the following describes Treasury Bills?

Treasury Bills, often referred to as T-Bills, are short-term government debt securities that are sold at a discount to their face value and do not pay any regular interest. Instead of receiving periodic interest payments (coupons), investors are compensated when the T-Bill matures—a scenario in which they receive the full face value. The difference between the purchase price and the face value at redemption represents the investor's earnings. This structure makes T-Bills an attractive investment vehicle which is highly regarded for its safety and liquidity.

The other statements do not accurately describe Treasury Bills, which helps clarify why those options are not the correct choice. T-Bills do not have a high-interest coupon rate since they are issued without any periodic interest payments. They also do not have long-term maturities; typically, they are issued with maturities of a few days up to one year. Moreover, T-Bills do not pay a fixed interest rate quarterly, as they are sold at a discount rather than providing regular coupon payments.