What role does your forecast of future interest rates play

Assignment Help Financial Management

Reference no: EM131837126 , Length: 2

Risk and Return

In an essay, to be submitted to the assignment dropbox by the last day of Week 3, 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 6% per year.

A 1-year savings deposit at a bank offering an interest rate of 7.5%.

A 20-year U.S. Treasury bond offering a yield to maturity of 9% per year.

What role does your forecast of future interest rates play in your decisions?

Your paper must be in a Word document of 2-4 pages, not counting the title page.

Include your calculations in a table within your paper and be sure to submit only one document to be graded in response to this assignment.

Your paper must be formatted in accordance with CSU-Global Guide to Writing and APA.

Examine the Critical Thinking grading rubric for this assignment, found in the Module 3 folder, to see how you will be graded.

Reference no: EM131837126

Questions Cloud

What are this dealers implied cross bid and ask prices : What are this dealer's implied cross bid and ask prices for exchanging Australian dollars and New Zealand dollars?

Reading the works of gandhi : "The term satyagraha" (truth-force) was coined by Martin Luther King Jr. after reading the works of Gandhi." True of False?

Distinguish among the given bases of comparison : Distinguish among the following bases of comparison: intracompany, intercompany, and industry averages.

Explain dual market theory : Question: Explain dual market theory. Based on readings from Kevin Carey and Marguerite Roza.

What role does your forecast of future interest rates play : What role does your forecast of future interest rates play in your decisions?Include your calculations in a table within your paper.

What is the impact on goodwill : If instead the noncontrolling interest shares of Leahy had traded for $5.19 surrounding Krause's acquisition date, what is the impact on goodwill

Determine the company financial well-being : Vern Thoms is puzzled. His company had a profit margin of 10% in 2017. He feels that this is an indication that the company is doing well.

What is one most important general impacts that social media : What is one most important general impacts that social media (and/or virtual communities) has had on society today?

How you might advise a client to use an option transaction : Describe a specific example of how you might advise a client to use an option transaction as an alternative to a direct stock transaction.

User Account

All Pages