Order Now Order Now
Login / SignUp
Order Now

Home Free Essays

>>

All Subjects

>>

Finance, Accounting And Banking

>>

Unit 7 Discussion

Unit 7 Discussion

Download

Unit 7 Discussion

[Author Name(s), First M. Last, Omit Titles and Degrees]

[Institutional Affiliation(s)]

Unit 7 Discussion

Annuities and Loans

Treasury bills and Treasury notes both are considered as the safest and secured investments because these are issued by the US government. The difference between the two forms of investments is that of liquidity. T-bills have a maturity time period of almost one year of less while T-notes have the maturity of almost 10 years (“Institutional- The Basics of Treasury Securities,” n.d.). I will not simply decide on making an investment of $50,000 with a timeframe of 9 years in a Treasury bill or Treasury note. Before making any decision I would consider different factors to determine what suits best for me and my needs as an investor. The first thing to note here is that treasury bills have a maturity period of almost less than a year. These bills are generally sold as a discount value from the par value and the government is bound to pay the difference of face value and purchase prices i.e. the interest earned on the bill. Considering the short-term maturity on the T-bills they offer lower yields as compared to the T-notes.

I would prefer to invest in T-notes considering the fact that they are long-term investments and my investment is nine years. In addition, the interest earned from the treasury notes is released from the income tax. As a result of the after-tax yield increases. In addition, there is also an added benefit of selling the t-note before maturity in case the investor needs money. Reselling can also result in the profits if the interest rate has declined after purchasing the Treasury note. The time period of a T-note which is of generally 10 years is considered as the benchmark for the treasury market. I believe I would be able to obtain a larger yield over a period of nine years.

References

ADDIN ZOTERO_BIBL {"uncited":[],"omitted":[],"custom":[]} CSL_BIBLIOGRAPHY Institutional-The Basics of Treasury Securities. (n.d.). Retrieved July 20, 2019, from https://www.treasurydirect.gov/instit/research/faqs/faqs_basics.htm#what

More Subjects

Education

(5614)

English

(2294)

Business And Management

(1760)

Healthcare And Nursing

(1684)

Psychology

(929)

History And Anthropology

(743)

Sociology

(572)

IT

(446)

Education

(429)

Finance, Accounting And Banking

(419)

Philosophy

(347)

Political Science

(310)

Law And International Law

(308)

HRM

(300)

Economics

(288)

Biology And Life Sciences

(267)

Literature

(249)

Marketing And PR

(238)

Culture

(140)

Environmental Science

(109)

Geography

(92)

Statistics

(64)

Maths

(53)

International Relations

(44)

Physics

(30)

Chemistry

(25)

Capstone

(8)

Project Management

(8)

Reflective Thinking

(7)

Critical Review

(3)

Linguistics

(3)

Critical Appraisal

(2)

BUS 2090

(2)

English 12 Drama

(1)

Business Information Technology

(1)

Operational Plan

(1)

Corporate Finance

(1)

L2 Photography And Design

(1)

Food Nutrition

(1)

Leadership

(1)

Nursing

(1)

MBA

(1)

Social Enterprise Project

(1)

Government

(1)

Our tools

Essay typer Grammar Checker Plagiarism Checker Citation Generator

Useful Links

Free Essays About Blog

Contact me

info@freeessaywriter.net

If you have any queries please write to us

Join our mailing list

Invalid Email Address!
Thank you for joining our mailing list

Please note that some of the content on our website is generated using AI and it is thoroughly reviewed and verified by our team of experienced editors. The essays and papers we provide are intended for learning purposes only and should not be submitted as original work.

© All Rights Reserved 2023

Privacy Policy Terms of Service Use Money-Back Guarantee Contact
Back to top