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Question 147 - CTFA discussion
Which would be an appropriate investment for temporarily idle cash that will be used to pay quarterly dividends three months from now?
A.
A long-term Aaa-rated corporate bond with a current annual yield of 9.4 percent
B.
A 30-year Treasury bond with a current annual yield of 8.7 percent
C.
Ninety-day commercial paper with a current annual yield of 6.2 percent
D.
Common stock that has been appreciating in price 8 percent annually, on average, and paying a quarterly dividend that is the equivalent of a 5 percent annual yield
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