Help me understand bond re-investment. : personalfinance

I bought a $5,000 8-week treasury invoice in January at 4.5%. Not totally understanding that the 4.5% was an annual share fee, I used to be disillusioned once I realized my $5,000 didn’t actually “develop,” however as a substitute I paid $4,965 to get $5,000. Appears much less enjoyable to get $35 over 8 weeks.

I’ve $2X,XXX which I’ve saved for scholar loans. I’m hoping to contribute as much as $3X,XXX earlier than curiosity funds resume.

I’m between shopping for a 4-week invoice and reinvesting till July, or opening a HYSA. (Or, every other shiny thought).

Earlier than I make my determination, I’m hoping somebody might clarify the mechanics of automated bond reinvestment

If I purchase a $100 invoice at $98, when it reinvests, will it take all $100? Or does it pay me $2 after which simply reinvest the $98?

Are the tax advantages higher for somebody dwelling in NYC to only buy a federal bond than open a HYSA?

What if I have to cancel the reinvestment?

If I do know I’m going to save lots of about $10,000 over the subsequent few months, would a HYSA be simpler, or simply the identical?

Thanks!