a) Investor A and investor B have surplus funds of $100 000 each. An intermediary has availed the following quotations to the two. For Investor A Instrument 120-day yield p.a. (%) Treasury Bill 10.675 Bond 11.375 For Investor B Instrument 90- day yield p.a. (%) Treasury Bill 10.500 Certificate of Deposit 10.815 i) Which instrument would you recommend for each investor? Show all workings. (4 marks)

ii) The government of Zimbabwe has been blamed in various circles for causing the current cash crisis. One of the ways, it is claimed, is its use of Treasury Bills (TBS) to fund its budget deficit. Critically evaluate the reasons of how this use of TBs may have contributed to the cash crisis. Could there have there been any winners and losers in all this?