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.