Most people view bonds in highly rated companies or municipalities as safe investments. If you...
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Most people view bonds in highly rated companies or municipalities as "safe" investments. • If you could safely say that the bond originator will not default, what are the other risks to holding a bond? • Provide an example of how you could lose money on a default free bond. In response to your peers, are all the risks captured? What are some ways, looking at your own investments, you could balance the risks? Annuity What are the upsides and downsides to annuities for retirees? What future assumptions do you have to make about market conditions for annuities to make sense for retirees? In response to your peers, discuss any other upside and downsides to annuities for retirees that may not have been presented in the post. Considering the assumptions made, what could be some potential outcomes? Most people view bonds in highly rated companies or municipalities as "safe" investments. • If you could safely say that the bond originator will not default, what are the other risks to holding a bond? • Provide an example of how you could lose money on a default free bond. In response to your peers, are all the risks captured? What are some ways, looking at your own investments, you could balance the risks? Annuity What are the upsides and downsides to annuities for retirees? What future assumptions do you have to make about market conditions for annuities to make sense for retirees? In response to your peers, discuss any other upside and downsides to annuities for retirees that may not have been presented in the post. Considering the assumptions made, what could be some potential outcomes?
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While bonds in highly rated companies or municipalities are generally considered safer investments there are still other risks to holding a bond even if we assume the bond originator will not default ... View the full answer
Related Book For
Fundamentals Of Electric Circuits
ISBN: 9780073301150
3rd Edition
Authors: Matthew Sadiku, Charles Alexander
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