2. Is Warren Buffet's Berkshire Hathaway mutual fund safer than US T Bonds (or opportunity costs)? How would you prove this statement? Use facts provided in class. 3. Who issues Bonds? Why should you own Bonds? What are the risks of owning Bonds? 4. What is the Par Value of Bonds? What is the Coupon Interest Rate? What is the Maturity Date? What is Call Provisions of a Bond? What is a Sinking Fund? What are Convertible Bonds? 5. Prepare a spreadsheet and a Rate Function to show Bond Yields below. "resent Value 1494.93 5. Prepare a spreadsheet and a Rate Function to show Bond Yields Present Value 1494.93 Future Value 1000.00 Number of Periods Payment Yearly 100 Solve for Rate of Interest 6. What are the realized returns for the stock market, for Small Compar 6. What are the realized returns for the stock market, for Small Companies, Large Companies; long term Bonds, Long Term Gov Bonds, and US T Bills? What investment portfolio would you select (do not include names of mutual funds or stocks, just overall types of investments.)? 7. What is diversification in the stock market? How many stocks do you need to own to diversify risk? What type of risk can you diversify? Should you include Global or Foreign stocks in diversification? 8. Who actually owns stock? How is the price of common stock based? How is the price of bonds valued? How is preferred stock valued? After-tax Earnings of a corporation ultimately belong to whom? 9. What do Investment Bankers such as Goldman Sachs do for a company such as Disney? What do they charge for their services? 10. What are the three main sources of capital for a company? Discuss the pros and cons of each one