The U.S. government owes you $100.
Option 1 is correct .
Treasury Bills:
Treasury bills, or T-bills, have the shortest terms of all and are issued with maturity dates of four, eight, 13, 26, and 52 weeks.
Treasury Bill Characteristics:
Unlike Treasury bonds and notes, T-bills do not pay periodic interest payments to investors. Instead, Treasury bills are auctioned off to investors at a discount to their face value. The investor's return is the difference between the face value and the discount price paid at purchase.
How Do You Cash a Treasury Bond?
For Treasury bonds held with a bank or broker, consult the institution to redeem them.
For Treasury bonds in Treasury Direct (electronically), investors don't need to take any action since the bond will be cashed out at maturity and deposited into your account as long as you supply your bank information to Treasury Direct.
Treasury Bonds :
Treasury bonds, called T-bonds for short, are often referred to as long bonds because they take the longest to mature of the government-issued securities. Treasury bonds are offered to investors in terms of 20 and 30 years to maturity.
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