Split into three layers by how long each dollar stays idle, a distributor's eleven-day surplus is placed within policy in the GF583 Unit 7 surplus investment plan outlined below. Searches like "gf 583 unit 7 assignment example", "gf583 unit 7 sample" and "gf583 unit 7 example" land here.
What a finished GF583 Unit 7 surplus investment plan looks like
About three pages: a surplus profile by day, a policy box, a placement table and an income comparison. The profile comes from the forecast: 42.0 million available on days one to four, 61.0 million on days five to nine and 27.0 million on days ten and eleven, before a manufacturer payment and a tax deposit absorb it. Three layers follow from that shape: 27.0 million present for all eleven days, 15.0 million for nine and 19.0 million for five. The base layer goes into a Treasury bill with ten days left to maturity, bought at a 4.12 percent discount, an investment yield of about 4.18 percent. The two shorter layers stay in the bank's government fund sweep at 3.87 percent after fees. Expected income totals 57,934, against 55,876 with everything swept.
How a GF583 Unit 7 example is structured
The plan states its order of priorities before naming any instrument: principal preserved, cash available on the day the forecast says it is needed, and yield considered only after both. A policy box lists what the firm permits, Treasury bills, a government money market fund and fully collateralized repurchase agreements with approved banks, along with the rule that governs the rest: no holding may mature after the date its cash is required. Layering comes next, drawn as a stepped chart so the three blocks can be seen against the daily profile. Each layer is then matched to the permitted instrument whose maturity fits, with income computed net of trade and sweep costs. Balances left to earn credits against bank fees get a brief section explaining why they would add almost nothing. The plan closes on what happens if the forecast proves wrong by a day or two.
Shape before instrument
Forty-two, sixty-one, then twenty-seven million across eleven days: the profile is drawn first because it, not any rate, decides how much money can be committed and for how long.
Three blocks under the curve
A base of 27.0 million for eleven days, 15.0 million for nine and 19.0 million for five. Each block is placed separately, with its own instrument and its own maturity.
A bill for the base layer
Ten days to maturity at a 4.12 percent discount gives a price of 99.8856 and an investment yield near 4.18 percent, earning 30,685 after a 250-dollar trade cost.
Why the shorter blocks stay swept
Bills for the nine-day and five-day blocks would add roughly 900 and 560 after trade costs, too little to justify two more trades, and bills maturing on those exact days may not exist.
Credits that would be forfeited
Earnings credits at 2.00 percent offset bank fees only, and standing balances already cover this month's fees, so a surplus left idle would earn close to nothing extra.
One day of margin
The bill matures on day ten, a day before the tax deposit it funds. A larger forecast miss would be met from the swept layers or, failing those, the line, and the plan says so.
Where marks go in GF583 Unit 7
Plans in GF583 generally give up the most ground when yield is discussed before maturity, since a higher-yielding holding that matures a day late fails the only test the surplus has to pass. Treating the surplus as one flat amount for eleven days, rather than as a shape, overstates what can be placed for the full period and understates what can go out for five. Discount yields set beside sweep rates without conversion to a common basis misstate the comparison. Instruments outside the stated policy, however safe they sound, usually draw a direct deduction, and a plan that never states a policy gives the grader nothing to test it against. Income reported gross of trade costs flatters the shorter placements. Leaving no provision for a forecast miss costs a smaller amount.
Get a GF583 Unit 7 example written to your instructions
A surplus profile or the forecast behind it, the investment policy in the Unit 7 case, current rates and the rubric: those are the materials. The custom plan layers the surplus by duration and places each block within policy, net of costs. Expect it inside 24-48h, with the opening request free.
GF583 Unit 7 questions, answered
Does the plan have to name specific funds or securities?
Usually not. Most prompts expect instrument types, such as a government money market fund, a Treasury bill of a stated maturity or a repurchase agreement, with rates taken from the case or a dated public source. Naming a particular fund adds little and can date the paper. What the grader checks is that each type is permitted by the policy and matures in time.
Why convert a Treasury bill's discount rate?
Because a discount rate is calculated on face value over a 360-day year, while sweep and deposit rates are quoted on the amount invested, usually over 365 days. Comparing them directly understates the bill's return. Converting to an investment yield puts every option on the same basis before any ranking is made, and most rubrics look for that step explicitly.
What if the case gives no investment policy?
Write a short one and label it as assumed: permitted instruments, a maximum maturity tied to the forecast, credit quality limits and any concentration limit. Then apply it consistently. A plan measured against a stated policy can be graded; one that simply picks the highest rate cannot be, and it usually loses the judgment credit for that reason.