Yields of money market funds. Many people invest in money market funds. These are mutual funds...
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Yields of money market funds. Many people invest in money market funds. These are mutual funds that attempt to maintain a constant price of $1 per share while paying monthly interest. gives the average annual interest rates (in percent) paid by all taxable money market funds from 1973 (the first full year in which such funds were available) to 2008. a. Make a line graph of the interest paid by money market funds for these years. b. Interest rates, like many economic variables, show cycles, clear but repeating up- and-down movements. In which years did the interest rate cycle reach temporary peaks? c. A plot against time may show a consistent trend underneath cycles. When did interest rates reach their overall peak during these years? Describe the general trend downward since that year. Table 10.3 Average annual interest rates (in percent) paid by money market funds, 1973-2008 Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 Rate 7.60 10.79 6.39 5.11 4.92 7.25 10.92 12.68 16.82 Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 Rate 12.23 8.58 10.04 7.71 6.26 6.12 7.11 8.87 7.82 Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 Rate 5.71 3.36 2.70 3.75 5.48 4.95 5.10 5.04 4.64 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Rate 5.89 3.67 1.29 0.64 0.82 2.66 4.51 4.70 2.05 Yields of money market funds. Many people invest in money market funds. These are mutual funds that attempt to maintain a constant price of $1 per share while paying monthly interest. gives the average annual interest rates (in percent) paid by all taxable money market funds from 1973 (the first full year in which such funds were available) to 2008. a. Make a line graph of the interest paid by money market funds for these years. b. Interest rates, like many economic variables, show cycles, clear but repeating up- and-down movements. In which years did the interest rate cycle reach temporary peaks? c. A plot against time may show a consistent trend underneath cycles. When did interest rates reach their overall peak during these years? Describe the general trend downward since that year. Table 10.3 Average annual interest rates (in percent) paid by money market funds, 1973-2008 Year 1973 1974 1975 1976 1977 1978 1979 1980 1981 Rate 7.60 10.79 6.39 5.11 4.92 7.25 10.92 12.68 16.82 Year 1982 1983 1984 1985 1986 1987 1988 1989 1990 Rate 12.23 8.58 10.04 7.71 6.26 6.12 7.11 8.87 7.82 Year 1991 1992 1993 1994 1995 1996 1997 1998 1999 Rate 5.71 3.36 2.70 3.75 5.48 4.95 5.10 5.04 4.64 Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 Rate 5.89 3.67 1.29 0.64 0.82 2.66 4.51 4.70 2.05
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Related Book For
Physics
ISBN: 978-0077339685
2nd edition
Authors: Alan Giambattista, Betty Richardson, Robert Richardson
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