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Federal Funds Effective Rate 2022/05 0.77 2021/05 0.06 3 Month Treasury Bill (Secondary Market Rate) Discount Basis 2022/05 0.98 2021/05 0.02 90 Day AA Nonfinancial

Federal Funds Effective Rate

2022/05 0.77

2021/05 0.06

3 Month Treasury Bill (Secondary Market Rate) Discount Basis

2022/05 0.98

2021/05 0.02

90 Day AA Nonfinancial Commercial Paper Interest Rate

2022/05 1.08

2021/05 0.05

Q1. Given the hierarchy of returns you have created for Fed Funds, commercial paper, and T-bills, where would you expect the yields of 3-month negotiable CDs and bankers' acceptances to fall? Explain.

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