Measuring and explaining premiums on money market securities

Obtain the latest report on short-term prime rate, federal funds, commercial paper, and certificate of deposits (use 1-month or 90-day, where applicable). Explain the premium. Use FRED2 or other sources (Appendix A, part 6)

Appendix A pt 6

6. Measuring and explaining premiums on money market securities (from Chapter a. What is the difference between the yield on 90-day commercial paper and the yield on 13-week T-bills at the end of the school term? Apply the concepts discussed in Chapter 6 to explain why this premium exists. b. Compare the premium on the 90- day commercial paper yield (relative to the 13-week T-bill yield) that exists at the end of the school term to the premium that existed at the beginning of the term. Apply the concepts discussed in Chapter 6 to explain why the premium may have changed over the school term. 6. Measuring and explaining premiums on money market securities (from Chapter a. What is the difference between the yield on 90-day commercial paper and the yield on 13-week T-bills at the end of the school term? Apply the concepts discussed in Chapter 6 to explain why this premium exists. b. Compare the premium on the 90- day commercial paper yield (relative to the 13-week T-bill yield) that exists at the end of the school term to the premium that existed at the beginning of the term. Apply the concepts discussed in Chapter 6 to explain why the premium may have changed over the school term