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Week 3 Assignment
Treasury: 4.60 %
Commercial: 4.88%
Certificate of deposit: 0.18%
Commercial paper, Certificates of Deposits, and T-Bills are momentary obligation
protections that are ordinarily utilized by financial backers to stop their assets for a brief length.
The Wall Street Journal's "money rates" section contains information on these securities' 30-day
yield.
The security with the best return is normally commercial paper, as it is viewed as more
hazardous than certificates of deposits and T-Bills. In order to compensate investors for the
additional risk, corporations' issue commercial paper with a yield that is typically higher than
that of other short-term debt securities.
T-Bills are typically the security with the lowest yield because they are regarded as the
safest short-term debt security. The government of the United States issues T-Bills, which are
regarded as having a low credit risk. T-Bills typically have a lower yield than other short-term
debt securities as a result.
As of right now, I would not currently invest in any of these securities. T-Bills are usually
supposed to be low risk with a lower yield, but with the way things have been going in the
economy the risk has grown as well as the yield. Commercial are seeing the same affect which
may bring worry to investors. The only safe bet would be a CD because there may be little to no
risk involved in investing your money. This would guarantee you bring in some sort of passive
income.
