Carol Zink of Zink Hotels has $10,000 of excess cash to invest fora 270-day period. The investment opportunities are as follows:

@ Certificate of deposit: 8% /annum

# Treasury bill: 8% discount rate

% XYZ Corporation bonds:

a. Current market value: $9,500

b. Maturity value (270 days hence): $10,500

c. Brokerage fees at date of purchase: $200

d. No separate interest payments will be received.
Required:
1. Calculate the yield rate of each investment opportunity.
Which investment would you advise Carol Zink to make? Why?