Which of the following is least likely to be considered a short-term marketable security?
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A. B. C. D.A
Of the given options, A and B are long-term securities, whereas C and D are short-term securities. Therefore, the correct answer is either A or B.
However, the term "marketable security" implies that the security can be easily bought and sold in a secondary market. Treasury bills and short-term corporate debt instruments are generally considered highly liquid, short-term marketable securities.
In contrast, long-term bonds like those described in options A and B are typically less liquid because they have a longer time to maturity.
Thus, of the two long-term bond options, option A (an original issue 30-year corporate bond with one-year remaining until final maturity) is the least likely to be considered a short-term marketable security.
Option A is a highly specific type of bond - an original issue bond that has been outstanding for 29 years and has only one year remaining until final maturity. Because this bond is so close to maturity, it may not be actively traded in the secondary market, especially if it is a corporate bond with a smaller issue size.
Therefore, option A is the least likely to be considered a short-term marketable security.