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1. THE TIME VALUE OF MONEY Some financial advisors recommend you increase the amount of federal income taxes withheld from your paycheck each month so

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1. THE TIME VALUE OF MONEY Some financial advisors recommend you increase the amount of federal income taxes withheld from your paycheck each month so that you will get a larger refund come April 15 take homeless today but get a bigger lump sumn when you get your refund. Based on your knowledge of the time value of money, what do you think of this idea? Explain 2. INTEREST RATE RISK Define what is meant by interest rate risk. Assume you are the manager of a $100 million portfolio of corporate bonds and you believe interest rates wilfalt, what adjustments sho your portfolio based on your beliefs? Please number each of your answers. This is very important so that I understand which questions you are responding to

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