While waiting for a plane. you met Miguel, a recent college graduate who once he heard that you knew something about investing, immediately began asking you questions about bonds. Miguel indicated that according to his friends, the stock market was too volatile and that bonds were a safer place to invest. Miguel admitted that he really didn't know much about either stocks or bonds but that he hoped to start saving so that he could purchase a house in the next 5 years. Miguel also mentioned that he had heard about preferred stock and real estate as alternatives to bonds. His roommate recommended that he buy a preferred stock that paid a 54.50 annual dividend or purchase farmland outside of his hometown. Answer the following questions in a way that will help Miguel learn investment concepts. Develop a checklist of rules that Miguel should use when purchasing a bond.