5. a. Go to www.treasurydirect.gov. Under Individuals, go to Treasury Bills, Notes, Bonds, TIPS, and FRNs. Click
Question:
5.
a. Go to www.treasurydirect.gov. Under “Individuals,”
go to “Treasury Bills, Notes, Bonds, TIPS, and FRNs.”
Click on “Treasury Bills.” Under “at a glance,” click on
“rates in recent auctions.” What is the investment rate for the most recently issued 26-week T-bills?
b. Go to the website of your favorite bank. What is the interest rate for six-month CDs?
c. Why are the rates for six-month CDs higher than for 26-
week Treasury bills?
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