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Use the "money rates" section of the Wall Street Journal to determine the 30-day yield (annualized) of commercial paper, certificates of deposit, and T-Bills. Which of these securities has the highest yield? Why? Which of these securities has the lowest yield? Why? Would you invest in any of these securities based on current market conditions?

User Cgijbels
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Final answer:

The 30-day yield of commercial paper, CDs, and T-Bills can be determined from the Wall Street Journal. Commercial paper typically has the highest yield due to its higher default risk, while T-Bills have the lowest yield as they are backed by the U.S. government.

Step-by-step explanation:

The 30-day yield of commercial paper, certificates of deposit (CDs), and Treasury bills (T-Bills) can be found in the 'money rates' section of the Wall Street Journal. The highest yield among these securities would depend on the current market conditions. However, historically, commercial paper tends to have higher yields compared to CDs and T-Bills due to its higher default risk.

The lowest yield among these securities would generally be T-Bills since they are considered the least risky among the three. T-Bills are directly backed by the U.S. government and are considered a safe investment.

Whether to invest in any of these securities based on current market conditions would depend on various factors such as risk appetite, investment goals, and prevailing interest rates. It is important to carefully analyze the market conditions, evaluate the risk-return tradeoff, and consult with a financial advisor before making any investment decisions.

User Jasper Kent
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