What are the more recently issued (and more frequently traded) bonds called? Why do investors favor these securities?
What are the more recently issued (and more frequently traded) bonds called? Why do investors favor these securities?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1. What are the more recently issued (and more frequently traded) bonds called? Why do investors favor these securities?
Expert Solution
Step 1
- The more recently issued (and more frequently traded) bonds are called Treasury Bonds which are issued by the Government.
- Treasury bills are considered one of the safest investments.
- Treasury bonds don’t offer the highest return and are considered more of a safeguard than to help your portfolio grow.
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