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Topic: Business
Number of pages / Number of words: 8 / 2046
Essay's paper body

A measure of the liquidity of a financial asset is the spread between the price at which securities dealers buy it (the bid price) and the price at which they sell it (the asked price). In recent years the bid-asked spread on actively traded bills has been 2 basis points or less, which is lower than for any other money market instrument" (Cook 80)...


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A basis point is equivalent to 1/100 of a percent.

Default Risk

Due to the fact that the T Bills are issue by the federal government, the default rate is non existent. T Bills has the highest grade of risk free asset in all the money markets. It even has a higher grade than certificate of deposits and/or commercial which is perceived to have some level of risk...


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