Questions from General Investment

Q: Why do companies like to issue convertible securities? What’s in it

Why do companies like to issue convertible securities? What’s in it for them?

Q: Describe LYONs, and note how they differ from conventional convertible securities

Describe LYONs, and note how they differ from conventional convertible securities. Are there any similarities between LYONs and conventional convertibles? Explain.

Q: Using the resources at your campus or public library or on the

Using the resources at your campus or public library or on the Internet, find the information requested below. a. Select any two convertible debentures (notes or bonds) and determine the conversion ra...

Q: Briefly describe each of the following theories of the term structure of

Briefly describe each of the following theories of the term structure of interest rates. a. Expectations hypothesis b. Liquidity preference theory c. Market segmentation theory According to these theo...

Q: Using the Wall Street Journal, Barron’s, or an online source

Using the Wall Street Journal, Barron’s, or an online source, find the bond yields for Treasury securities with the following maturities: 3 months, 6 months, 1 year, 3 years, 5 years, 10 years, 15 yea...

Q: Briefly explain what will happen to a bond’s duration in each of

Briefly explain what will happen to a bond’s duration in each of the following situations. a. The yield to maturity on the bond falls from 8.5% to 8%. b. The bond gets one year closer to its maturity....

Q: Assume that an investor comes to you looking for advice. She

Assume that an investor comes to you looking for advice. She has $200,000 to invest and wants to put it all into bonds. a. If she considers herself a fairly aggressive investor who is willing to take...

Q: Contrast mutual fund ownership with direct investment in stocks and bonds.

Contrast mutual fund ownership with direct investment in stocks and bonds. Assume your class is going to debate the merits of investing through mutual funds versus investing directly in stocks and bon...

Q: Describe the process of creating an ETF. How does it differ

Describe the process of creating an ETF. How does it differ from the process by which an open-end fund is created?

Q: For each of the following initial investment amounts, calculate the future

For each of the following initial investment amounts, calculate the future value at the end of the investment period if interest compounds annually.