Question: Consider three securities: a. A floating-rate bond. b. A preferred share paying a fixed dividend. c. A floating-rate preferred. If you were responsible for short-term

Consider three securities:
a. A floating-rate bond.
b. A preferred share paying a fixed dividend.
c. A floating-rate preferred.
If you were responsible for short-term investment of your firm’s excess cash, which security would you probably prefer to hold? Why? Explain briefly.

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