Final answer:
A mortgage backed security is the most suitable investment for Jethro's goal of a steady monthly cash flow during retirement, offering regular payments like bond coupon payments from the pool of mortgages they represent. Therefore correct option is A
Step-by-step explanation:
If Jethro is looking for an investment that will provide a steady stream of monthly cash flows to supplement his retirement income, a mortgage backed security would be the most suitable investment. Mortgage backed securities are types of investments that pool together mortgages and offer regular payments that are similar to bond coupon payments. These payments derive from the payment of principal and interest that is collected from the pool of mortgages. This type of security can provide Jethro with the steady and predictable cash flow he desires.
Compared to his other options, a revenue bond could also provide a regular income stream, as they are paid for by the revenue from a specific project or source. However, it could be less predictable if the revenue stream is inconsistent. A technology stock might offer dividends, but it is generally riskier and less predictable. Lastly, a D-rated corporate bond is considered high risk with a greater chance of default, which is likely not suitable for someone seeking a steady income for retirement.