AFP Certified Treasury Professional CTP Question # 469 Topic 24 Discussion

AFP Certified Treasury Professional CTP Question # 469 Topic 24 Discussion

CTP Exam Topic 24 Question 469 Discussion:
Question #: 469
Topic #: 24

A publicly held U.S. company has reported at the beginning of the year that it expects to increase shareholder value by 5%. The current expectations are for interest rates to remain steady with a decline in fourth quarter. Treasury policy requires that investments be 90 days or less and investment grade. How should the company invest excess cash to support this goal?


A.

Commercial paper


B.

High-yield bonds


C.

16-week U.S. Treasury bill


D.

BB rated bond


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