What role does your forecast of future interest rates play

Reference no: EM13840031

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 annualized yield of 3%.
A one-year savings deposit at a bank offering an interest rate of 4.5%.
A 20-year U.S. Treasury bond offering a yield to maturity of 6% per year.

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

Reference no: EM13840031

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What role does your forecast of future interest rates play : 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 annualized yield of 3%. A one-year savings deposit at a bank offering an interest rate of 4..

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