Q. Which would be an appropriate investment for temporarily idle corporate cash that willbe used to pay quarterly dividends three months from now? (Solved)
1. A long-term AAA-rated corporate bond with a current annual yield of 9.4 percent.
2. A 30-year Treasury bond with a current annual yield of 8.7 percent.
3. Ninety-day commercial paper with a current annual yield of 6.2 percent.
4. 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 yiel
- c. Ninety-day commercial paper with a current annual yield of 6.2 percent.