1. What are risks associated with investing in bonds as a long-term investment? Why would bonds/bond mutual fund be used within an investment portfolio and how might such an investment impact an investor?

2. Consider the European sovereign debt crisis. In 2011, many countries in the European markets were suffering through a sovereign debt crisis which impacted multiple nations (Greece, Spain, Italy, Ireland, Portugal). What were some of the causes and how did countries respond to this crisis?

3. Why do firms elect rules other than NPV (e.g. payback rule)? Would the NPV rule be more appropriate? Why or why not?