Treasury bills and treasury notes

Reference no: EM13833691

Finance Discussion

Need a 200 to 400 word response. In-line citation(s) and reference(s) in APA format, but the answer itself does NOT have to be in APA format.

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.

Reference no: EM13833691

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