USING EXCEL 3. Practical Applications: A. Some people claim that the bond market is inherenly more stable than the stock market. They claim they know that whatever principal they invest in a bond, that principal will always be there waiting for them. Is this always a true claim? Explain. (this is just another way of asking if bond prices remain stable, or do they fluctuate?) B. Why do "high yield, thus junk bonds, pay high yields?

A. Some people claim that the bond market is inherenly more stable than the stock market. They claim they know that whatever principal they invest in a bond, that principal will always be there waiting for them. Is this always a true claim? Explain. (this is just another way of asking if bond prices remain stable, or do they fluctuate?) B. Why do "high yield", thus "junk" bonds, pay high yields