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As a treasurer of a corporation, one of your jobs is to maintain investment in liquid securities such as Treasury securities and commercial papers. Your
As a treasurer of a corporation, one of your jobs is to maintain investment in liquid securities such as Treasury securities and commercial papers. Your goal is to earn as high return as possible, but without taking much of risk. The yield curve is currently upward sloping; such that the10-year Treasury bonds have an annualized yield 3 percentage points above the annualized yield of three-month T-bills. Should you consider using some of your funds to invest in 10-year Treasury securities?
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