Question

Is the High Rate listed in the results of the t-bill auction results have te same meaning as the T-bill discount rate? Why or why not?  

Answer 1

No, the high rate listed in the results of the T-Bill Auction results does not have the same meaning as the T-bill discount rate. The reason for this is that the discount yield is the annualised rate of return, whereas the high rate in the results of the auction is actually the interest earned. T Bills are sold at a discount to face value during an auction but the investors receive the full face value at the maturity.

Hope the difference is clear. All the best, Thanks!