A public company is planning to raise 3.2 million dollars by using financial instruments

for a seven-month project. Assume you work as a financial advisor, which instrument you

would suggest the company to issue or purchase? Is the instrument you suggest a money

market instrument or capital market instrument? Explain the reason(s).

Discuss at least two reasons (differences) why the instrument you suggested in part (a)

may trade at a different yield to a 10-year treasury bond.