You Have $10,000 to Invest for Short-Term Liquidity Needs in a Declining

Multiple Choice

You have $10,000 to invest for short-term liquidity needs in a declining interest rate period. Pick the best investment.

A) A 270-day T-bill that pays interest of $591.78 for the period
B) A 365-day T-bill that can be purchased at a discount for $9250
C) A 180-day term deposit that pays $394.52 interest for the period
D) A 300-day term note that pays $649.32 interest for the period