Fixed Income Test 2 (Answerd) Verified Solution
Two factors account for prominence of US Treasuries 1) Volume 2) Liquidity Department of Treasury = largest global single issuer of debt. Most active/liquid market in the world. All Treausury securities are noncallable. Thus, investors are not subject to call risk Marketable Treasury secs fixed-principal securities or inflation-indexed securities Treasury Bills - issued at discount - no coupon - one year or less - return to the investor = the difference between the maturity value and purchase price Treasury notes - pay coupons - 1 to 10 years Treasury bonds - pay coupons - Greater than 10 years
Written for
- Institution
- Fixed Income
- Course
- Fixed Income
Document information
- Uploaded on
- October 19, 2023
- Number of pages
- 13
- Written in
- 2023/2024
- Type
- Exam (elaborations)
- Contains
- Questions & answers
Subjects
-
two factors account for prominence of us treasurie