Imagine you have $10,000 that you want to invest and you want to invest in some bonds..docx - Imagine you have $10,000 that you want to invest and you

Imagine you have $10,000 that you want to invest and you want to invest in some bonds..docx

This preview shows page 1 - 2 out of 2 pages.

Imagine you have $10,000 that you want to invest and you want to invest in some bonds.*You would be looking at the coupon rate (which is the interest rate that it will pay) since you want to get the highest return on your investment*You would also be looking at the risk rating to make sure it is not too risky or you might lose your money if the company gets into trouble financially. choose any companyExample Microsoft or apple or any company that you would consider buying bonds from.Look at the coupon and then the Moody's rating ( this measures risk) and decide how you will invest your money.Say which bonds you will invest your $10,000 in and explain your choice in the discussion!Bond investment strategy is important as it can minimize the risk by diversification and correct portfolio will provide required annual income. Treasury bonds are government backed securities which are considered risk free. Optimum portfolio of risk free and risky asset can maximize the investor's objective.
Background image
Image of page 2

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture