Would you rather have a savings account that pays 5% interest compounded semiannually or one that pays 5% interest compounded daily? Explain.

How should the concept of the time value of money affect a persons decision to take on debt? (For example, does it make a difference if one chooses a 15-year mortgage or a 30-year mortgage?)

Explain what a bond is and the types of actions that increase or decrease a bonds yield to maturity. Why would a company choose to take on bonds?