Comparing different securities (like CD's, bonds, and common stocks), please explain to me why it is important to know what interest rate should be used in that comparison. Provide a specific illustration complete with numbers. thank you© BrainMass Inc. brainmass.com December 20, 2018, 12:48 am ad1c9bdddf
It's important to know the CD rate because that is the rate you will be receiving when you put money on a cd for a certain period of time. For example, if you put 10,000 on a cd at a six month rate of 5.5% for six months, you would receive 5.5% of 10,000 which is $550. Sometimes you will see the ...