Question
If you expect that interest rates will decline, it would make sense to switch from a bond with a 4 percent semi-annual coupon maturing in
If you expect that interest rates will decline, it would make sense to switch from a bond with a 4 percent semi-annual coupon maturing in three years to a bond with the same features, except maturing in 12 years.
Select one:
True
False
If you want to save $1,000,000 for retirement with $200 monthly deposits (end-of-month) at 6.5 percent interest compounded monthly, how long will it take?
a.
54.0 years
b.
53.0 years
c.
51.4 years
d.
49.9 years
You are 25 years old and saving for an early retirement. Assuming that you have a high risk tolerance, which of the following can best help you reach your goal of retiring early?
a.
A dividend fund
b.
A bond fund
c.
A growth fund
d.
A money market fund
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