Is that the holders have no say in the company search

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is that the holders have no say in the company search as in voting and they cannot get higher dividends than the rate agreed. Certificate of Deposits The certificate of deposits is issued by the bank to investors such as the Barrows for depositing their funds for a particular period of time at a specific interest rate. Advantages include a fixed rate of return and terms, higher interest rates compared to normal bank savings and less risky. Their disadvantage is that the longer the maturity period the better the interest rate and earlier withdrawal attracts fines and penalties (Ally Financial Inc., 2016). Exchange Traded Funds ETFs are marketable securities that hold underlying diversified assets such as shares/stocks, bars of gold etc. and experience price changes as they are bought and sold. They are advantageous as they have higher daily liquidity, fewer fees compared to mutual funds, they
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FIXED INCOME ANALYSIS contain diversified assets, and there are no minimum purchases. The main disadvantage of ETFs is that they depend largely on volumes being traded and can lose value in case there is little trading. In addition to that, they are highly liquid. Long-term Certificate of Deposits When it comes to the certificate of deposits the best institutions to use is banks as they do not charge commissions. As of 27th September 2018, Discover bank had one of the highest annual percentage yields of 3.10% on its 10 year CD (Discover Financial Services LLC, 2018). If Mr. and Mrs. Barrows invest $300,000 in the CDs and do not withdraw monthly, they will make $109,022.15 in interests plus the principal amount of $300,000 after 10 years. If they withdraw the interests each year, they will withdrawing an average of $9,445 per year. This will go on for the next 10 years and be paid back the $300,000 investment in 2028. The net present value will be $82,594. The net present value of the cash flow is listed below.
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FIXED INCOME ANALYSIS Annuities With immediate lifetime annuities, the Barrows will receive payments as long as they live. When it comes to specified period annuities, the Barrows will receive payments till the period expires. In case they die before the period expires, their beneficiaries will receive the income. Since the Barrows are both 65, it is important to consider the life expectancy. The average life expectancy in the United States is 81 years for women and 76 years men (Tinker, 2017). With this in mind, Mr. and Mrs. Barrow should look for lifetime annuities or one that will last a period of 20 years since they can always reinvest. The top-rated annuity solutions firm with A++ rating include New York life, USSA, Mass Mutual, Guardian Life, and Integrity Life. United service Automobile solutions offer one of the best rates and are among the top rated. For
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FIXED INCOME ANALYSIS Mr. and Mrs. Barrows and based on their age and investments they will receive monthly annuities of $1,505.61 in lifetime annuities and $1,743 if they invest for a specific period of 20 years (USAA, 2018). The table below shows the present value of the amount they would have received after several significant years considering they are 65 years old. Even after 20 years, the Barrows would not have received cash flows equivalent to the $300,000 initial investment in
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FIXED INCOME ANALYSIS present values.
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FIXED INCOME ANALYSIS Treasury Bonds The United States government will issue the next bonds in November 11 th ,2018 ( U.S Department of the Treasury, 2018). The bond being issued will expire in 2048. There is also the
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