Questions from Personal Finance

Q: What are DRPs, and how do they fit into a stock

What are DRPs, and how do they fit into a stock investment program?

Q: Brad Smitham,, a 53-year-old retail store manager

Brad Smitham,, a 53-year-old retail store manager earning $75,000 a year, has worked for the same company during his entire 28-year career. Brad was recently laid off and is still unemployed 10 months...

Q: Calvin and Danielle Perkins, ages 30 and 28, were recently

Calvin and Danielle Perkins, ages 30 and 28, were recently married in Kansas City. Calvin is an electrical engineer with Analytical Solutions, a computer component design firm. Danielle has a master’s...

Q: Go to the asset allocation tool provided at the following internet site

Go to the asset allocation tool provided at the following internet site: http://www.ipers.org/calcs/AssetAllocator.html Enter assumptions that fit your current and anticipated situation and produce an...

Q: What’s the difference between a secured bond and an unsecured bond?

What’s the difference between a secured bond and an unsecured bond?

Q: Are junk bonds and zero coupon bonds the same? Explain.

Are junk bonds and zero coupon bonds the same? Explain. What are the basic tax features of a tax-exempt municipal bond?

Q: What is a convertible bond, and why do investors buy convertible

What is a convertible bond, and why do investors buy convertible securities?

Q: Describe the conversion privilege on a convertible security. Explain how the

Describe the conversion privilege on a convertible security. Explain how the market price of the underlying common stock affects the market price of a convertible bond.

Q: Explain the system of bond ratings used by Moody’s and Standard &

Explain the system of bond ratings used by Moody’s and Standard & Poor’s. Why would it make sense to ever buy junk bonds?

Q: What effects do market interest rates have on the price behavior of

What effects do market interest rates have on the price behavior of outstanding bonds?