Dan Rutherford - Illinois State Treasurer

Sample Potential investments:
3 month CD @ 4.05%
5 month T-Bill @ 4.125%
8 month CD @ 4.225%
1 year T-Note @ 4.30%
2 year T-Note @ 4.60% Sample Current Overnight Rate: 4.00%

Should we purchase any, all or none of the investments given the following expectations?

Rate Expectations:
3 months: 4.25%
6 months: 4.50%
12 months: 4.75%

Breakeven Calculation:

Number of Days times expected rate for period plus number of days from rate change times new rate plus etc.etc.
Previous total divided by total number of days.

3 months:
(90 x 4.00)/90 = ?
360/90 = 4.00 %

5 months:
((90 x 4.00) + (60 x 4.25))/150 = ?
(360 + 255)/150 = ?
615/120 = 4.10%

8 months:
((90 x 4.00) + (90 x 4.25) + (60 x 4.50))/240 = ?
(360 + 382.5 + 270)/240 = ?
1,012.5/240 = 4.219%

1 year:
((90 x 4.00) + (90 x 4.25) + (180 x 4.50)/360 = ?
(360 + 382.5 + 810)/360 = ?
1,552.5/360 = 4.3125%

2 years:
(1,552.5 + (360 x 4.75))/720 = ?
(1,552.5 + 1,710)/720 = ?
3,262.5/720 = 4.53125%

If you have any questions or comments for our Portfolio Managers, please call us at (800) 346-7414.

I-Cash allows you to search the state's unclaimed property database for money or property that belongs to you.

College Savings offers ways to save and earn tax-free money with Illinois' 529 College Savings Program.

Ag Invest helps farmers offset the rising cost of farming and encourages green business development.

Money Market Fund allows local government entities to pool their investments to gain a higher rate of return for their residents.

Online bill paying gives people with busy schedules a quick and convenient way to pay government bills and fees.