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Assume an investor is considering purchasing either a Treasury bill or commercial paper with 120 days until maturity that are the exact same in all
Assume an investor is considering purchasing either a Treasury bill or commercial paper with 120 days until maturity that are the exact same in all respects(maturity, risks, etc) expect for their yields. If the Treasury bill is yielding 2.00% and the corporate bond is yielding 1.96%, would the investor prefer the T-bill or the commercial paper?
A. Treasury bill
B. indifferent between the two
C. corporate bond
D. not enough information
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