Calculate the difference between the interest rate on a three-month certificate of deposit (CD) and the three-month
Question:
Calculate the difference between the interest rate on a three-month certificate of deposit (CD) and the three-month treasury bill rate, and plot this in a time series plot. What do you notice? In particular, are there any regularities associated with recessions, and the most recent (2008–2009) recession? Discuss what these regularities suggest.
Answer this question using the Federal Reserve Bank of St. Louis’s FRED database, accessible at http://research.stlouisfed.org/fred2/
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Annual percentage yield APY is calculated by using this formula APY ...View the full answer
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Dudhat Vaidehi
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