Question: 41 In response to a question from her manager regarding bond markets, Celestila Moonn, an UMB intern at SchoolStreet, Inc. made the following statement: Bond
41 In response to a question from her manager regarding bond markets, Celestila Moonn, an UMB intern at SchoolStreet, Inc. made the following statement: Bond markets are markets in which bonds are issued and trade. By purchasing either the U.S. Treasury Bonds or Greek Government Bonds, I can lend money to the U.S. Treasury or Greek Government. Since bonds are amortized security I do not have to wait until maturity to get interest payments and the principal amount back from the Greek Government. So there is no default risk. Briefly discuss if you disagree with Moonn's statement. Due on February 10 at 10pm In response to a question regarding common stock and preferred stock Celestila Moonn 4 tells the following to her uncle Dr. Lee. However, Lee was not sure whether he agrees with Moonn. Stocks are known as "equities" because each stock share represents a small percentage of ownership in the company. When you invest in stocks, you accept the risk that your investment may decline as well as rise in value; however, unlike preferred stock, common stock always pay dividends quarterly. Do you think Dr. Lee was correct to disagree with Moonn? Briefly discuss if you agree with Moon
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