Question 19.12

  1. 3. Go to www.treasurydirect.gov. Under the “Individuals” tab, go to “Treasury Securities & Programs.” Click on “Treasury bills.” Under “at a glance,” click on “rates in recent auctions.” What is the investment rate for the most recently issued 26-week T-bills?

  2. Go to the website of your favorite bank. What is the interest rate for six-month CDs?

  3. Why are the rates for six-month CDs higher than for 26-week Treasury bills?