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Go to https://fred.stlouisfed.org/categories . Under Money, Banking, & Finance select Interest Rates. Compare the yield offered on a T-bill with the yield offered by another
Go to https://fred.stlouisfed.org/categories .
Under Money, Banking, & Finance select Interest Rates. Compare the yield offered on a T-bill with the yield offered by another money market security with a similar maturity.
a. What is the difference in yields?
b. Why do you think the yields differ?
c. How is the risk premium on a specific risky money market security (versus the T-bill) changed since one year ago?
d. Is the change due to a change in economic conditions? Explain
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