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    Why are Treasury Bills a Financial Managers' Investment Favorite?

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    Could I get a clear answer on understanding what the T-bills are and why they are a favorite place for investing cash? Thank you.

    © BrainMass Inc. brainmass.com June 3, 2020, 7:11 pm ad1c9bdddf
    https://brainmass.com/business/cash/treasury-bills-financial-managers-investment-favorite-89334

    Solution Preview

    Hello!
    Treasury Bills are a type of debt obligation issued by the US Government, with short-term maturities. They are sold in denominations of $1,000 and, instead of making interest payments, are sold at a "discount from par".

    For example, you can buy a $1,000 T-Bill that expires in four weeks, for $990. Essentially, you are paying $990 today against the promise that the US Government will pay $1,000 to you four weeks ...

    Solution Summary

    300 words giving 3 major reasons financial managers favor treasury bills heavily.

    $2.19

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