Posted: February 12th, 2023
Determine the interest rate she is currently earning on her inheritance by going to the U.S. Treasury Department Web site (treasury.gov) and selecting “Data” on the main menu. Then select “Daily Treasury Yiled Curve Rates” under the Interest Rate heading and enter the appropriate year, 2016, and then search down the list for March 16 to obtain the closing yield or interest rate that she is earning. Use this interest rate as the discount rate for the remainder of this problem.
SOLUTION
The U.S. Treasury Department’s website (treasury.gov) provides information on the daily Treasury yield curve rates. To determine the interest rate for a particular year, you would need to select “Data” on the main menu, then select “Daily Treasury Yield Curve Rates” under the Interest Rate heading and enter the appropriate year. In this case, you would enter 2016. Once you have the yield curve for the year, you would then search down the list for March 16 to obtain the closing yield or interest rate.
However, it is important to note that the interest rate can vary depending on various factors such as the current market conditions and the term of the investment. It’s always a good idea to check the latest rates and make sure you’re getting the best return on your investment.
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