Question

You have $5,000 to invest for the next year and are considering the alternatives, which is...

You have $5,000 to invest for the next year and are considering the alternatives, which is the best choice? Show your work, explain your answer

1) A money market fund with an average maturity of 30 days offering a current yield of 2.0% per year

2)A 1-year savings deposit at a bank offering an interest rate of 4.0%

3)A 20-year U.S. Treasury bond offering a yield to maturity of 4.0% per year

4)A 20-year corporate bond offering a yield to maturity of 7.

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