What role does your forecast of future interest rates play

Assignment Help Financial Accounting

Reference no: EM131187250

Write an essay and address the following:

You have $5,000 to invest for the next year and are considering three alternatives:

1. A money market fund with an average maturity of 30 days offering a current yield of 6% per year.

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

3. 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.

Reference no: EM131187250

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