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You have $5,000 to either spend or invest in a 5 year Treasury note. Which would...

You have $5,000 to either spend or invest in a 5 year Treasury note. Which would you choose? Why?

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Answer #1

I would like to invest $5000 because it will help me in generating a higher rate of return in coming future through effects of compounding as treasury bills are highly risk free and they are also offering with the uniform rate of return along with lower risk.

Investment in treasury bills is generally preferable because treasury bills are government backed securities and they will have the backing of the central government so there would not be any risk related to repayment of the capital and the bills are also better investment where there is an adverse economic situation like in current environment, when there is a risk of an impending recession so I will be likely investing my dollars 5000 into treasury bills.

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