Your Certificate of Deposit Will Mature in One Week and You

Your Certificate of Deposit will mature in one week and you are considering how to invest the proceeds.If you invest in a 30-day CD the bank will pay you 4%.If you invest in a 2-year CD the bank will pay you 6% interest.Which option would you choose?

A) the 30-day CD,no matter what you expect interest rates to do in the future
B) the 2-year CD,no matter what you expect interest rates to do in the future
C) the 30-day CD if you expect that interest rates will fall in the future
D) the 2-year CD if you expect that interest rates will fall in the future
E) You would be indifferent between the 30-day and the 2-year CDs.