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SVETLANKA909090 [29]
3 years ago
10

Treasury bills and Treasury notes are an investment security issued by the U.S. government. A Treasury bill matures within one y

ear 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 time frame is 9 years. Current investment opportunity interest rates are 5% and are expected to increase to 7% in 6 months. Would you invest in the Treasury bill that you can rollover every 6 months and reinvest or leave your money in the Treasury note that will mature in 9 years? Discuss your reasoning.
Business
1 answer:
mel-nik [20]3 years ago
5 0

Answer:

<u>I would rollover.</u>

Explanation:

It is expected an increase in the interest rate in the near future. It is better to <u>wait for the purchase of a long-term note because</u>, once the interest rises, the <u>price of the TS at 9 years will decrease</u> to match the new yield.

While doing a rollover we can make the cash work at 5% and start yielding at 7% in six month. Once the expectation of higher interest rate vanish, I can consider moving to a long Treasury Bill, which most probably will have a lower cost than today.

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Solnce55 [7]

Answer: Razor and blade strategy

Explanation:

The Razor Blade Model is a model that is used by companies to deeply discount or give away a core product hoping that the consumers will buy the more expensive and complementary dependent products.

The razor and blades business model is a model whereby one item is sold at a cheaper price or sometimes given for free so as to increase the sales of its complementary good. For example, ink catridges are required for inkjet printers and software and accessories are used for game consoles. So, selling ink catridges at a low rate can lead to more sales for inkjet printers.

7 0
3 years ago
Which of the following should take place in the completing stage when writing an instant message?a. Creating a content outline b
antoniya [11.8K]

Answer:

C. Proofreading

Explanation:

Option A is wrong. In an instant message, no one is trying to create a content outline as it is not a letter or assignment.

Option B is incorrect. An instant message can be sent to many people at a time. Therefore, maximizing the number of receivers is the main idea while writing an instant message.

Option D is also not correct. Acronyms are hard to understand. Writing acronyms in an instant message will be challenging for the receivers.

Option E cannot be the answer as an instant message can be sent anytime. Therefore, it can be increased.

<em>Option C</em> is correct because while writing an instant message, proofreading is a necessary stage. If anything misspelled or miswritten, the explanation will change.

5 0
3 years ago
Which of the following statements about material requisitions is false? a. Material requisitions are often computerized. b. Mate
Vladimir79 [104]

Answer:

D. Material requisitions authorize the transfer of materials from the production floor to the raw materials warehouse

Explanation:

Material requisitions doesnt authorize anything, just provides information

6 0
3 years ago
Suppose two cities are considering tearing down their stadiums to build new ones. In one city, the old stadium cost $5 million t
timofeeve [1]

Answer:

These are the options for the question:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

B. They should be more willing to tear down the $50 million stadium, because it cost more to build.

C. The cost to build the old stadium shouldn’t be considered.

And this is the correct answer:

A. They should be more willing to tear down the $5 million stadium, because it cost less to build.

Explanation:

City A will likely be more willing to tear down its old stadium because it costed $5 million to build. City B, on the other hand, will have to think twice because a stadium that costed $50 billion to build could have more value than it seems, or the City could simply not have enough money to build a better new stadium (something that would probably cost more than $50 billion to do).

4 0
3 years ago
Read 2 more answers
What is from utility
ella [17]

Explanation:

Refers to how well a product or service meets the customer's needs

3 0
3 years ago
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