What is the typical maturity duration for treasury bills?

Treasury bills are short-term government securities that are issued at a discount and mature in a relatively short time frame. The typical underlying principle of a treasury bill is that it does not pay interest in the traditional sense; instead, the investor receives the face value at maturity, reflecting the difference between the purchase price and the face value as the interest earned.

The maturity durations for treasury bills are specifically designed to cater to short-term funding needs. They are usually issued with maturities of 1 month, 3 months, and 6 months. This design allows investors to manage their liquidity and short-term investment needs effectively. Hence, the option indicating that treasury bills typically mature in less than one year, specifically in 1, 3, and 6 months, accurately captures the common characteristics of these instruments.

Other options reflect either longer maturity durations or incorrect specifics about treasury bills. For instance, options suggesting durations longer than one year do not align with the nature of treasury bills, as they are not issued with such extended maturity periods.