At the birth of the twins, the grandparents gifted $10,000 to buy bonds for the newborns as

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At the birth of the twins, the grandparents gifted $10,000 to buy bonds for the newborns as a start to their college savings.

a. Which type of bonds should be bought and why?

b. What options are there to diversify this bond investment?

c. In this example, if $5,000 had been invested in a corporate conversion bond in year 5 and the company’s stock prices have been trending well; what would be the motivators (if any) of converting the bond to stock?

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Personal Finance Building Your Future

ISBN: 978-0073530659

1st edition

Authors: Robert B. Walker, Kristy P. Walker

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Question Posted: Apr 18, 2018 09:15 AM

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At the birth of the twins, the grandparents gifted $10,000 to buy bonds for the newborns as

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a Notes to EE Savings Bonds limit on savings bond is 5000 a yea...View the full answer

Personal Finance Building Your Future

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