Bond clip.JPG Jason is 45 years old and has $100,000 to invest for his retirement. He has narrowed his choices down to two options: 

(1) a $100,000 debenture bond from ACME, Inc. that pays 4% interest or 

(2) a municipal bond issued by the city of Whoville (or "muni bond") that pays 1% interest. Both bonds mature in 20 years. 

Define these two items and talk about the pros and cons and things that should be considered before a decision is made.

Answer rating: 100% (QA)

it is a case of comparison between whether to invest in the corporate Bond which is paying with the higher interest or whether to invest in the munici... View the full answer