Refer to the table below to answer one question. Interest Rate Option March 2020 Cash 0.00% Checking accounts 0.01% 6-month CD 1.70% 10-year Treasury bond 0.88% Corporate bond (Aaa) 2.67%
Refer to the table below to answer one question. Interest Rate Option March 2020 Cash 0.00% Checking accounts 0.01% 6-month CD 1.70% 10-year Treasury bond 0.88% Corporate bond (Aaa) 2.67%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
13

Transcribed Image Text:Refer to the table below to answer one question.
Option
Interest Rate
March 2020
Cash
0.00%
Checking accounts
0.01%
6-month CD
1.70%
10-year Treasury bond
0.88%
Corporate bond (Aaa)
2.67%
What is the implied price of holding money in a checking account rather than investing in Treasury bonds?
Instructions: Enter your response as a percentage rounded to two decimal places.
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