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Old 02-15-2007, 05:15 PM  
poe
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Join Date: Mar 2004
Posts: 455
I am money stupid. Please teach me about money markets.

How do money markets work? Specifically Paypal's.

They say the average yield is 5.04% per 7-day period. Why is it measured in 7-day periods? Flipping through the prospectus it looks like the average yearly return is around 3%.

I don't get it.

Do I earn 5.04% once a year? Once a month? 3% once a year?

Enlighten me
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