Zero-CouponTreasury Bond Bill (Case Study Sample)

Title of the Assignment: Zero-CouponTreasury bond bill
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The people of the United States of America woke up to witness a peculiar kind of efficient remedy by the government salvage its deteriorating economy. A dire need for monetary support called for engagement in the sale of a three-month treasury bill,-a principle of experimental and development economics-.
Free short-term loan.
In a quest to bridge the close gap, the US government issued a zero coupon treasury bill that assumes a positive time value for money and was bought at a lower price than the actual face value it holds payable at a particular time of maturity(Zeng, M. 2015). No periodic interests have to be paid hence way different from the common bonds that the investor receives payments on the exclusive coupons and gets the actual amount of money (face value) at the point of maturity of the bill. The Short-term zero rated coupon bonds exclusively have maturity periods clocking below twelve months hence termed as bills that stand for an active liquid debt owed by the government to astute investors.
Economic recession.
As witnessed in the United States during the period of ‘Great Depression’, the remarkably riskier liquid debt instrument had to be involved to solve the...