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1 . Sarah and Mark Hoffland have total take - home pay of $ 3 , 2 0 0 a month. Their average monthly expenses
Sarah and Mark Hoffland have total takehome pay of $ a month. Their average monthly expenses are $ Calculate the minimum amount this couple needs to establish as an emergency fund.
At the beginning of the year, Kenma has the following investment choices. Ignoring tax, determine the return for each investment and advise Kenma of the benefit and risk of each option assuming they are risk averse.
a shares in a publicly traded company that cost a total of $ and pay an annual dividend of $ per share. The investment value is not anticipated to change during the year.
b Bonds of a publicly traded company that cost a total of $ and pay annual interest of The investment value is not anticipated to change during the year.
c A oneyear GIC from a chartered bank that costs $ and pays annual interest of
Assume that three years ago, Samiya purchased a year corporate bond that pays The purchase price was $ Also, assume that today the comparable bonds are paying
a What is the annual dollar amount of interest that Samiya would receive from her bond investment?
b Assuming that comparable bonds are paying what is the approximate market price for which she could sell her bond?
c Did the bond increase or decrease in value?
d Why did the bond increase or decrease in value?
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