#1 Why should a financial investor care about diversification?

#2 Is investing in housing always a very safe investment?

#3 Imagine that a local water company issued a $10,000 ten-year bond at an interest rate of 6%. You are thinking about buying this bond one year before the end of the ten years, but interest rates are now 9%.

#4 Given the change in interest rates, would you expect to pay more or less than $10,000 for the bond?

#5 Calculate what you would actually be willing to pay for this bond.

#6How does a government agency raise revenue differently from a private company, and how does that affect the way government decisions are made, compared to business decisions?