Unformatted text preview: l
companies Professionally managed portfolios
of marketable securities; provide
instant liquidity None—depends
on wishes of
investor Vary, but generally
higher than U.S.
Treasury issues and
negotiable CDs and
commercial paper 1.47%d Repurchase
agreements Bank or
dealer Bank or security dealer sells
specific securities to firm and
agrees to repurchase them at a
specific price and time Customized to
needs Generally slightly
below that associated
with the outright
purchase of the
security Nongovernment Issues aThe prime rate of interest at this time was 4.75%.
obtained for 3-month maturities of each security.
cFederal National Mortgage Association (Fannie Mae) constant maturity debt index is used here.
dThe Dryfus Money Market Fund with an average maturity of 64 days is used here in the absence of any average-yield data. Comparatively low
money market mutual fund yields occur when interest rates are historically low, as was the case in early 2002.
Source: Wall Street...
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