Casey has $ 1,000 to invest in a certificate of deposit. Her local bank offers her 2.5%

Question:

Casey has $ 1,000 to invest in a certificate of deposit. Her local bank offers her 2.5% on a 12- month FDIC- insured CD. A nonfinancial institution offers her 5.2% on a 12- month CD. What is the risk premium? What else must Casey consider in choosing between the two CDs?