Treasury Bill Cash Management Program 1/31/2012
|
Duration |
Amount |
Yield |
Income |
Total Yield |
|
1 month |
$2,500,000 |
0.04% |
$1,000.00 |
|
|
3 months |
$2,500,000 |
0.05% |
$1,250.00 |
|
|
6 months |
$2,500,000 |
0.08% |
$2,000.00 |
|
|
12 months |
$2,500,000 |
0.11% |
$2,750.00 |
|
|
$10,000,000 |
.0007% |
$7.000.00 |
0.0007% |
|
|
Average duration 166 days |
|
|
||
Cash Management Program using T-Bills and Liquidity Reserve
|
Duration |
Amount |
Yield |
Income |
Total Yield |
|
1
month T-Bill |
$2,500,000 |
0.04% |
$1,000.00 |
|
|
3
months T-Bill |
$2,500,000 |
0.05% |
$1,250.00 |
|
|
6
months T-Bill |
$2,500,000 |
.008% | $2,000.00 |
|
| Liquidity Reserve |
$2,500,000 |
1.12% |
$28,000.00 |
|
|
|
$10,000,000 |
.00322% |
$32,250.00 |
0.00322% |
|
Average duration 120 days |
|
|
||
As you can see by just changing out the 12 month T-Bill portion and inserting a Liquidity Reserve Account the yield is just about 4.5 times greater and the duration shortens.
