1- A) Why are US Treasury Bonds widely considered the safest investment on the planet? B) Name...
Question:
1-
A) Why are US Treasury Bonds widely considered the safest investment on the planet?
B) Name at least three reasons why people might prefer US Series EE Savings Bonds over US Treasury Bonds.
2) Jodie, Natalie, and Neal ask you to determine the equivalent taxable yield on a municipal bond. The bond's current yield is 3.75% with 5 years left to maturity. Jodie is in the 15% marginal tax bracket, Natalie is in the 25% marginal tax bracket and Neal's tax bracket is 35%.
Calculate the equivalent tax yield for each one and advise them whether it makes sense to buy this bond as opposed to a AAA corporate bond with a current yield of 4%.
REAL ESTATE INVESTING
3) Name at least four carrying costs associated with direct ownership of rental real estate.
4) Name at least one advantage of real estate investing and one disadvantage of real estate investing when compared to stock and bond investing.