Treasury Bills Essay Example for Free

Treasury Bills EssayINTRODUCTIONExecutive SummaryInvestment is the process of putting excess funds of an individual, groups or companies in ventures that result have better returns. For the investment to be viable, a stream of benefits must be anticipated in future years. Investment can any be a bypass term or long term. The best investment option for the company or individual is always based on availability of funds to be committed and for how long. Short term investment always is made when an individual wants to recoup his funds quickly and normally heads of slight than twain years period. The interest price associated with it is always very small and can be ignored.Long term investment involves a long period to recoup the investment outlay.Most firms are at cross roads they are not sure where to invest the excess funds which can be either in the unwashed fund or treasury observations. The decision to put the money in either of the option will depend on the following How long will the funds be available?What is cost of capital to be use?Liquidity of the firmWhat other long-term and short term projects planned?What is the attitude towards risk?What is the government policy on investment?In order for me to come up with proper decision where to invest, we are undertaking a project to overcome the factors mentioned above. The objectives of the project will be-To identify the better investment at times excess of funds in the short-runTo identify the better investment at times of excess funds in the long-runTo identify the risky investment among the twoWhich of the two affects the liquidity of the fund in the long-run?Statement of the problemInvestment decisions are very important at times of excess funds or little funds. The investment in mutual funds or treasury bills is always a problem to individuals and companies. Companies or individuals without financial advisors may be set about with problem of choice.1.3 GoalsIn making an investment of funds that are available, the investor needs to identify which investment is ideal the treasury bills or money market mutual fund.1.4 Objectives or tasksThe objectives of the study will be based on the following-Which of the two has less risk?What are the interest rates that are offered?What has been the operation of each in the past?What are the certainty recouping funds in full at times of inflation?Which attracts less tax?Who has issued the Treasury bill or mutual fund?From past records mutual funds are riskier as compared to Treasury bill. This is because it is assured that governments will note their entire obligation as compared institutions. Governments can not become insolvent being issuers of treasury bills except one that past a resolution in parliament not honour their debts.Treasury bills always offer a lower rate as compared to mutual funds money market. Treasury bills are either 90 daytime or 180 day periods which can be rolled over in case the investor does not need the funds immediately.The project will cost 2400 to its completion. The funding will be provided by the Scholarship Provider. EditingThe advertise will compile and analysed after the data has been collected. The topic will be indite by James and taken for typesetting at Marys place. After typesetting the report will be printed and copies given to James, Joseph, John, Mary, Asnata and Jane for checking and editing to produce a safe(p) copy. After the editing each editing member contributions will forward to Mr. Johnson for inputting and typeset document, a final draft will be produced. All name are imaginary Action and Recommendation 1 LayoutThe project report will be forty four pages, typeset on font surface of 12, double spaced, with one page abstract. It will contain introduction, problem statement, goals and the financial statement for project. It will be produced and spiral bound.3.2 TableTimetableActionTime translationResearchBegin 14/7/07End 28/7/07 Research method will be chosen Develop research expertness Identify the investors to be used Identify methods used in the research Identify other sources to referenced Prepare research questionnaire for interviewsWriting29/7/07To31/7/07 Compile and analysis the research data Tabulate the information equanimous Choose the format of report writing Choose writers for the report and give them directions Write and type write the dataEditing1/8/07To3/8/07 Choose editors of the report from among the participants Print a rocky draft for editing Editing takes places Print the edited copy and ask them to redit itPrinting4/8/07The report is printed out as per number of copies unavoidableBinding5/8/0710/8/07 The report is taken for editing before distribution The report is distributedBudget for the ProjectActivity descriptionCostResearch Research method will be chosen Develop research capability Identify the investors to be used Identify methods used in the research Identify other sources to referenced Prepare res earch questionnaire for interviews1200Writing Compile and analysis the research data Tabulate the information gathered Choose the format of report writing Choose writers for the report and give them directions Write and type write the data300Editing Choose editors of the report from among the participants Print a rough draft for editing Editing takes places Print the edited copy and ask them to reedit it200PrintingThe report is printed out as per number of copies needed500Binding The report is taken for editing before distribution The report is distributed100TOTAL24003.3 OutlineThe project will have six sections.Executive summary will summarize the whole reportIntroduction This will contain statement of the problemInteractive review article This will have a review of the existing research materials on the topic of research.Research Methods used in the research and how data is collected information analysis This will contain the research data its analysis and tabulation REFERENCESEu gene Brigham, Michael Ehrhardt Financial Management, Theory and Practice, Thomson South-Western, 2005Robert Hudson, Alan Colley The Capital Markets Financial Management in Banking, Lessons Professional, 2000Neil Herman Jacoby, Raymond Joseph telephone line Finance and Banking, Ayer Pub, 2000Naciones Unidas Transnational Corporations Management Division, M Moffett, International Financial Management, Routledge 1993