Selecting a CD.Casey has

$6,000

to invest in a certificate of deposit. Her local bank offers her

4.28%

on a twelve-month FDIC-insured CD. A nonfinancial institution offers her

6.12%

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 __ %.

(Round to two decimal places.)

Casey must also consider:(Select the best answer below.)

A.

the government's risk tolerance.

B.

that if she only needs access to the money after a long period of time, the nonfinancial institution's CD might be too risky.

C.

the bank's risk tolerance.

D.

that if she needs access to the money in a short period of time, the nonfinancial institution's CD might be too risky.