What role does your forecast of future interest rates play in your decisions?
January 28, 2021 Comments Off on What role does your forecast of future interest rates play in your decisions? Uncategorized Assignment help

Option #2: Risk and Return 2 In an essay, address the following: You have $5,000 to invest for the next year and are considering three alternatives: A money market fund with an average maturity of 30 days offering a current yield of 2.0% per year A 1-year savings deposit at a bank offering an interest rate of 4.0% A 20-year U.S. Treasury bond offering a yield to maturity of 4.0% per year A 20-year corporate bond offering a yield to maturity of 7. What is the risk profile of each of these assets? What role does your forecast of future interest rates play in your decisions?