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Mr. and Mrs. Kent contacted us (the financial advice firm you work for) because they need some help with investing in fixed income. They own
Mr. and Mrs. Kent contacted us (the financial advice firm you work for) because they need some help with investing in fixed income. They own their own house; they already have equity investments, and they are considering investing $300,000 in fixed income. They tell us that they are interested in an investing horizon of about 20 years. We must respond to these questions: 1. A) What are the fixed income investments we should consider? (Hint: Simply write their names in a list.) B) What do you recommend for us among CDs, treasuries, and corporate bonds? (Hint: discuss yields for each with, for example, the information available at vanguard.com.)
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