Mutual Fund Manager today examines on 6/12/2002 the placement of 20,000,000 Euros on that money market product that yields the highest return possible for a specified period of time.

Assuming that the only information at his disposal is the following price sheets, consider and rank all possible placements in terms of performance.

Price Sheet of interest-bearing bills
Maturity	Duration	Purchase price	Selling price	Issue amount
6/1/03	3M	97,498	98,658	100 bil
6/2/03	6M	97,942	98,321	80 bil
6/3/03	9M	97,384	98,484	150 bil
6/6/03	12M	96,727	97,827	90 bil

Price Sheet of commercial securities
Duration	Purchase yield	Selling yield
1M	17,50%	17,10%
2M	11,40%	11,25%
3M	7,90%	7,36%
6M	5,10%	5,12%

Calculate for each time period and the highest yield placement the amount that will be required to invest.

Based on the above price sheets: 1) What is the yield curve? 2) How much is credit risk valued:?