The 90-day T-bill with a quoted yield of 1.5% offers a better return than the 180-day CD with a quoted yield of 1.6%.
What is a better return?
Comparatively, we need to annualize the returns to determine the security that offers the better return.
The 90-day T-bill with a quoted yield of 1.5% is compared with the 180-day CD with a quoted yield of 1.6% annually.
Data and Calculations:
Treasury Bill Certificate of Deposits
Investment costs $10 million $10 million
Quoted yield per 90 days 1.5%
Quoted yield per 180 days 1.6%
Annualized yield = $600,000 $320,000
($10,000,000 x 1.5%) x 360/90 ($10,000,000 x 1.6%) x 360/180
Thus, the 90-day T-bill with a quoted yield of 1.5% offers a better return than the 180-day CD with a quoted yield of 1.6%.
Learn more about annualized returns at https://brainly.com/question/15326227
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