1. Carlos holds a portfolio of stocks and bonds. He is planning to buy a real estate property worth $150,000. He can use financial leverage to make this purchase by:
selling bonds from his portfolio worth $80,000 and writing a check for $70,000.
taking a personal loan worth $100,000 and selling bonds worth $50,000 from his portfolio.
paying $150,000 in cash from his savings account.
selling stocks from his portfolio worth $50,000 and paying $100,000 in cash.
paying $75,000 cash in the first installment and selling shares worth $75,000 from his portfolio to pay the second installment
2. If you have already purchased bonds, you want interest rates(market rates) on bonds to decrease, holding everything else constant.
True or False