Posted: June 7th, 2016
Risk and Reward
Currently the interest yield on short term Treasury Bills is near zero. Longer term rates for mortgages are under 4%. Why would someone want to buy Treasury Bills as opposed to investing in mortgage backed securities? Explain in terms of risk factors (maturity, liquidity, default, etc.).
Course Material: Hubbard, R. (2013). Money, Banking, and the Financial System (2nd ed.). New York, N.Y.: Pearson. ISBN: 9780132994910
Edition 1 can be used as well.
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