Discuss the pros and cons of strategy

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The US government has more than $16 trillion in debt outstanding in the form of Treasury bills, notes, and bonds in 2013. With short-term interest rates near 0% in 2013, suppose that the Treasury decided to replace maturing notes and bonds by issuing new Treasury bills, thus shortening the average maturity of US debt outstanding.

Discuss the pros and cons of this strategy.

Reference no: EM131445464

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