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路 Assume that you are choosing an investment for your retired parents. What are the advantages and disadvanges of each of the following? o
a bond issued by the federal government,
o
a state or local government,
o
or a corporation?
路 answer.
Which would you recommend for your retired parents? Justify your
路 Five years ago, you purchased a $1,000 corporate bond issued by General Electric. The interest rate for the bond was 5%. Comparable bonds are paying 6% today. o What is the approximate dollar price for which you could sell your General Electric bond? o
In your own words, describe why your bond decreased in value.
路 Sidney took a $200 cash advance by using checks linked to her credit card account. The bank charges a 2% cash advance fee on the amount borrowed and offers no grace period on cash advances. Sidney paid the balance in full when the bill arrived. o
What was the cash advance fee?
o
What was the interest for 1 month at an 18% APR?
o
What was the total amount she paid?
o What if she had made the purchase with her credit card and paid off her bill in full promptly? ¡ Retirees often make a choice between the following: advantages and disadvantages of both.
What are the
o 1) taking a lump-sum pension payout and purchasing an annuity (or having the company convert their benefit to an annuity for them) or 2) using the lump-sum payout to purchase a portfolio of bonds intended to provide them an income stream. Compare the advantages and disadvantages of each strategy.