Answer:
<u>Solution and Explanation:</u>
<u>Evaluation for investment decisions
</u>
- Investing for Wedding
- Investing for Retirement
- Energy sector mutual fund
- General electric bond – 18 months
- Johnson & Johnson stock
- Money market shares
- General electric bond – 2.5 years
- Short term junk Bonds
- Treasury Note – 60 months
CD – 24 months= Maturity period has met the criteria for short term goal and money used for their wedding
General electric bond – 18 months=Bonds are generally Long term or short term depends upon the maturity period for this bond has only 18 months maturity period
Money market shares = This instrument is readily converted into cash at any point in time
Saving account = No obligation of any maturity period saving account is personal account
Short term junk Bonds = Short term junk bonds are for a short period of time
Energy sector mutual fund = This sector mutual fund has long term maturity period and thereafter returns in the long term
Johnson & Johnson stock = It is considered as a dividend growth stock and investor invest for high growth on the market value of the share price
General electric bond – 2.5 years = This instrument has a long term maturity period
Dow ETF ETF is retained for capital gains in the near future period but their gestation period is high
Treasury Note – 60 months = Investment for 60 months which is not suited for short term goal of investor
Answer:
a. $10,783.68
b. $10,510.36 semi annual compounding
Explanation:
a. This question requires the present value of $26,700 given 8 years and compounded annually at 12%.
Present Value = 
Present Value = 
Present Value = $10,783.68
He would need to invest $10,783.68 today.
b. This is a duplicate of question 1 but I will solve it assuming semi-annual compounding just in case.
12% per annum would become = 12/2 = 6% per semi annum
Number of periods would become = 8 * 2 = 16 periods
Present Value =
Present Value = 
Present Value = $10,510.36
He would need to invest $10,510.36 today.
Answer: "e. None of the answers above is correct."
Explanation: 1) If a bond sells for less than par, its yield at maturity is greater than its coupon rate.
2) If a bond sells at par, its current yield will be the same as its yield at maturity.
3) A bond selling for more than par will always have a lower capital gain than a par bond.
4) Both Incorrect.
Answer:
a movement up and to the right along the supply curve for oranges.
Explanation:
The supply curve exhibits the price and quantity.
Quantity on the x axis that reflects the quantity supplied.
Price on the y axis that reflects the price at which the particular commodity is offered.
Accordingly, when there is increase in prices of orange the y axis will move upward, also as there is increase in price the suppliers would supply more at the price, accordingly x axis will also grow.
Accordingly the supply graph will move upward in the right direction.
Since Alex and Bailey are partners and they will be shutting down the partnership. the debts should be settled by both. they will have to sacrifice their personal assets in doing so
