Question
You are considering investing $10,000 in ABCs bonds. Right now the stated rate of the bonds is seven percent, and the market rate is eight
You are considering investing $10,000 in ABCs bonds. Right now the stated rate of the bonds is seven percent, and the market rate is eight percent. The Federal Reserve System is considering lowering the interest rate by two percent to help stimulate the economy sometime next year, but the final decision has not been made (or at least publicly announced).
Should you invest in the bonds now or wait until the Federal Reserve System makes its announcement?
What is your reasoning behind your decision?
What affect will this have on ABCs financial statements? How long should you hold the bonds if you choose to invest?
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