A $10 million investment in 90 day T-bill has a 1.5% quoted yield. An equivalent size 180 day CD has a 1.6% quoted yield. Which security offers the better return?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 5TP: Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The...
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A $10 million investment in 90 day T-bill has a 1.5% quoted yield. An equivalent size 180
day CD has a 1.6% quoted yield. Which security offers the better return?

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