Tyson Furniture has $100,000 in excess cash that it wants to invest in one or more cash equivalents. The treasurer has researched two money market accounts and two certificates of deposit (CDs) offered by four major banks. This is the information she gathered:

The two 90-day certificates of deposit are FDIC insured for up to $100,000. The money market accounts are not FDIC insured.
Suggest how Tyson Furniture might allocate its $100,000 cash among these four opportunities.
Discuss the trade-offs that management mustconsider.

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Minimum Investment Penalty for Early Withdrawal? Investment Institution Nexity Bank Bank of America Discover Bank Commerce Bank Investment Type Money market account Money market account 90-day CD 90-day CD Interest Rate 0.5% 1.0 1.3 Financial Risk Very low Very low Very low Very low $1,000 0 No es es 50,000 2,500 100,000