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.