Question: Q2: Explain the difference between an interest-only loan and amortized loan, which would you prefer as a borrower? Q3: Define liquidity risk, default risk, and

Q2: Explain the difference between an interest-only loan and amortized loan, which would you prefer as a borrower?

Q3: Define liquidity risk, default risk, and taxability risk and explain how these risks relate to bonds and bond yields.?

Q4: Explain the difference between common stock and preferred stock. Which one would you prefer as an investor?

Q5: Explain the differences and similarities between net present value (NPV) and the profitability index.

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