Which would be an appropriate investment for temporarily idle cash that will be used to pay quarterly dividends three mo
Posted: Thu Jul 21, 2022 8:53 pm
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
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