FIN 364 Week 5 Discussion 1 | Devry University

FIN 364  Week 5 Discussion 1 | Devry University

Week 5: Money Market Instruments in Detail

You are the CEO of a Fortune 500 company. You have two objectives.

1. Invest $5 million cash on hand short term (overnight to one month).
2. Borrow $100 million for your firm’s working capital needs.

How would you achieve both objectives using the money markets? Describe your alternatives in terms of the characteristics of money market instruments. Which of the money market instruments would you choose in each case? Why?

 

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