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Treasury Bills

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

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.