Questions from General Investment

Q: What are two or three of the major investment attributes of common

What are two or three of the major investment attributes of common stocks?

Q: What is a stock chart? What kind of information can be

What is a stock chart? What kind of information can be put on charts, and what is the purpose of charting?

Q: Using annual compounding, find the yield to maturity for each of

Using annual compounding, find the yield to maturity for each of the following bonds. a. A 9.5%, 20-year bond priced at $957.43 b. A 16%, 15-year bond priced at $1,684.76 c. A 5.5%, 18-year bond price...

Q: In what two ways, based on the number of shares transacted

In what two ways, based on the number of shares transacted, do brokers typically charge for executing transactions? How are online transaction fees structured relative to the degree of broker involvem...

Q: A bond has a Macaulay duration of 8.62 and is

A bond has a Macaulay duration of 8.62 and is priced to yield 8%. If interest rates go up so that the yield goes to 8.5%, what will be the percentage change in the price of the bond? Now, if the yield...

Q: Find the Macaulay duration and the modified duration of a 20-

Find the Macaulay duration and the modified duration of a 20-year, 10% corporate bond priced to yield 8%. According to the modified duration of this bond, how much of a price change would this bond in...

Q: Describe call and put options. Are they issued like other corporate

Describe call and put options. Are they issued like other corporate securities?

Q: Which one of the following bonds would you select if you thought

Which one of the following bonds would you select if you thought market interest rates were going to fall by 50 basis points over the next six months? a. A bond with a Macaulay duration of 8.46 years...

Q: Stacy Picone is an aggressive bond trader who likes to speculate on

Stacy Picone is an aggressive bond trader who likes to speculate on interest rate swings. Market interest rates are currently at 9%, but she expects them to fall to 7% within a year. As a result, Stac...

Q: Elliot Karlin is a 35-year-old bank executive who

Elliot Karlin is a 35-year-old bank executive who has just inherited a large sum of money. Having spent several years in the bank’s investments department, he’s well aware of the concept of duration a...