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    Treasury Bills

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    As the cash manager of your company, you wish to buy $1,000,000 in 30-day Treasury bills. You obtain the following bid/ask quotes from three dealers:
    -Dealer A 3.01 3.00
    -Dealer B 3.02 3.01
    -Dealer C 2.99 2.98

    Which dealer should be selected? State the appropriate quote and calculate the price

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    Solution Preview

    A Treasury Bill is a short term government obligation, designed to be paid back in no more than 52 weeks. In this case, we are looking at a ...

    Solution Summary

    This question relates to the use of short term investments in order to create cash flow and to utilize cash to the benefit of the firm.