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Selecting a CD. Casey has $ 1 , 0 0 0 to invest in a certificate of deposit. Her local bank offers her 3 .
Selecting a CD.Casey has $1,000 to invest in a certificate of deposit. Her local bank offers her 3.96% on a twelve-month FDIC-insured CD. A nonfinancial institution offers her 5.01% on a 1twelve-month CD. What is the risk premium? What else must Casey consider in choosing between the two CDs? The risk premium is nothing%. (Round to two decimal places.)
Selecting a CD.Casey has
$1,000
to invest in a certificate of deposit. Her local bank offers her 3.96%
on a twelve-month FDIC-insured CD. A nonfinancial institution offers her 5.01%
on a 1twelve-month CD. What is the risk premium? What else must Casey consider in choosing between the two CDs? The risk premium is
nothing%.
(Round to two decimal places.) Step by Step Solution
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