Why would you want to invest in a bond over a stock what


1. Why would you want to invest in a bond over a stock? What are some of the risks associated with investing in bonds?

2. Can anyone identify the various types of bonds?

3. Assume a $1,000 Treasury bill is quoted to pay 5 percent interest over a six-month period.

a. How much interest would the investor receive?

b. What will be the price of the Treasury bill?

c. What will be the effective yield?

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