MT/217 MT217 MT 217 Unit 7 Discussion
- Kaplan University / MT 217
- 24 May 2018
- Price: $8
- Other / Other
Annuities and
Loans
Treasury bills and Treasury notes
are an investment security issued by the U.S. government. A Treasury bill
matures within one year and investors typically roll over the matured Treasury
bill and purchase another Treasury bill the same day. Treasury notes have
maturities of up to 10 years.
You are considering investing
$50,000 in a Treasury bill that you will renew every 6 months or invest in a
Treasury note that you will hold until maturity. Your investment timeframe is 9
years. Current interest rates are expected to increase. Would you invest in the
Treasury bill or Treasury note? Discuss your reasoning.