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Please help especially with Question (d), thank you! (a) (b) (c) John, a retiree, approaches your financial advisory film for advice on investing in stocks
Please help especially with Question (d), thank you!
(a) (b) (c) John, a retiree, approaches your financial advisory film for advice on investing in stocks and bonds. He wants to know more about the differences between these 2 asset classes, as to cash flows, risks, retums and suitability of these investments for him. Apply your knowledge of stocks and bonds to advise him. (10 marks) John further notes that in the aftermath of the Covid-19 pandemic, the dividend yields of some stocks are at very attractive levels and asks your advice in regard to investing in these stocks. Evaluate and advise John. (5 marks) John is now convinced that he should put some of his savings into bonds. You have identified the following 5-year bonds which have similar risk characteristics:- Bond x z Price 98 95 94 Cou on 400 3.5% Cou on fre uenc Semi-annually Annually Monthly Which of these bonds should you recommend John to invest assuming it meets his panicular requirements and circumstances? (10 marks)
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