"A customer in a low tax bracket has just inherited $10,000 and is looking for an investment that will provide current income and liquidity. The BEST recommendation is a:&q…

Question

"A customer in a low tax bracket has just inherited $10,000 and is looking for an investment that will provide current income and liquidity. The BEST recommendation is a:"

Answer 1

The missing options are as follows:

A. Corporate Bond ETF

B. Variable Rate Bond

C. Municipal Bond Fund

D. Treasury STRIPS

Correct option is A, Corporate Bond ETF

Step-by-step explanation:

Since corporate bond EFT is traded on a recognized exchange, divesting in no distant time makes the investment the most liquid out of the options provided.

Also, income is also received on periodically, mostly on semiannual basis in terms of receipt of coupon interest.

Above, the principal is repaid at maturity, in other words, the investor receives cash all the way.