The daily market transactions for Treasury instruments are in the billions. The current average daily volume of "Treasuries" is approximately $150 billion. Like you, corporations may have extra cash to invest.

In this case, you, as a finance manager, are considering investing $50,000 in either a Treasury bill that you will renew every 6 months or in a 5-year Treasury note that you will hold until maturity. Current interest rates are expected to increase.

Would you invest in the Treasury bill or Treasury note? Remember that the primary duty of company management is to increase shareholder value. Will either of these investments accomplish this goal? Please show your math supporting your decision here.

Answer rating: 100% (QA)

As a finance manager it is important to consider the potential return on investment ROI when deciding where to invest company funds In this case you a... View the full answer