A nonfinancial institution offers her 52 on a 12-month cd, Corporate Finance

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A nonfinancial institution offers her 52 on a 12-month cd

Selecting a CD. 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?

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Corporate Finance: A nonfinancial institution offers her 52 on a 12-month cd

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