Question: ( 6 points ) Should you Own Stocks or Bonds? ( a ) Suppose that you believe a publicly - traded company will become more

(6 points) Should you Own Stocks or Bonds? (a) Suppose that you believe a publicly-traded company will become more profitable over the course of the next 5 years. Would you rather own equity issued by this company or bonds issued by this company? Why? You will be graded on your explanation, not simply the correct answer. (b) Suppose that you believe a publicly-traded company will go bankrupt over the course of the next 5 years. Would you rather own equity issued by this company or bonds issued by this company? Why? You will be graded on your explanation, not simply the correct answer.

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