Which would be an appropriate investment for temporarily idle corporate 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.

Which would be an appropriate investment for temporarily idle corporat

1.	Which would be an appropriate investment for temporarily idle corporate 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.
Answer» c) Ninety-day commercial paper with a current annual yield of 6.2 percent

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