Questions from Personal Finance


Q: Bond Values. What factors determine the value of a bond?

Bond Values. What factors determine the value of a bond?

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Q: Bond Ratings and Conflict of Interest. Discuss the potential for conflict

Bond Ratings and Conflict of Interest. Discuss the potential for conflict of interest in bond rating agencies prior to 2014. How did the Securities and Exchange Commission address this issue?

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Q: Interest Rate Risk. How is interest rate risk affected by a

Interest Rate Risk. How is interest rate risk affected by a bond’s maturity? How can investors use expectations of interest rate movements to their advantage?

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Q: Interest Rate Strategy. Describe how the interest rate strategy for bond

Interest Rate Strategy. Describe how the interest rate strategy for bond investment works. What are some of the potential problems with this strategy?

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Q: Passive Strategy. How does the passive strategy for bond investment work

Passive Strategy. How does the passive strategy for bond investment work? What is the main disadvantage of this strategy?

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Q: Maturity Matching. Describe the maturity matching strategy of investing in bonds

Maturity Matching. Describe the maturity matching strategy of investing in bonds. Give an example. Why is this strategy considered conservative?

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Q: Impact of Weak Economy on Bond Prices. Explain why prices of

Impact of Weak Economy on Bond Prices. Explain why prices of risky bonds may decline when economic conditions weaken.

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Q: Bond Price Sensitivity to Economic Conditions. Why are prices of some

Bond Price Sensitivity to Economic Conditions. Why are prices of some bonds more sensitive to economic conditions than others?

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Q: Itemized Deductions. Tracy is single and had adjusted gross income of

Itemized Deductions. Tracy is single and had adjusted gross income of $37,000 in 2018. Tracy also has the following items: Which of Tracy’s expenses might qualify as itemized deducti...

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Q: Federal Agency Bonds and Taxes. What types of tax incentives are

Federal Agency Bonds and Taxes. What types of tax incentives are offered by federal agency bonds?

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