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how do we value money market securities, bonds and stocks? Do you think that this model (technique) makes sense? Limit your answer to 400 words.

how do we value money market securities, bonds and stocks? Do you think that this model (technique) makes sense? Limit your answer to 400 words.

We have devoted several chapters to this CLO. First, we focused on money market securities. Remember that money markets are short-term instruments, i.e. securities with a maturity of a maximum a year. These securities are Treasury bills, commercial paper, federal funds, repurchase agreements, negotiable certificates of deposit, bankers acceptances, and Eurodollars. We also examined capital markets. Capital markets are for securities with an initial maturity greater than one year. These securities include bonds, stocks, and mortgages. Your textbook defines stocks as follows: A share of stock in a firm represents ownership. A stockholder owns a percentage interest in a firm, consistent with the percentage of outstanding stock held. While bonds are described as: Bonds are securities that represent a debt owed by the issuer to the investor. Bonds obligate the issuer to pay a specified amount at a given date, generally with periodic interest payments. Keep these definitions in mind when you answer the question above.

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