gf500 unit 3 assignment 1 1

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Assignment 1: Textbook Questions

The following Course Outcome is assessed in Assignment 1:

1. GF500-2: Formulate how interest rates are determined and the interest
rate risk associated with financial market instruments.

2. Go to http:// research.stlouisfed.org/ fred2. Under “Categories,”
select “ Interest rates.” Compare the yield offered on a T- bill with
the yield offered by another money market security with a similar
maturity. What is the difference in yields? Why do you think the
yields differ?