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