Topic: Treasury Bills Versus Treasury Notes and Changes in Interest Rates

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.

Your initial discussion post must include one outside resource, which may include

the Internet or Library, and must be cited according to current APA formatting.