Question: You decide to explore the possibility of investing in bonds as a way to put excess funds to work at Stupendous Bank
Explain each of the following!!!
1. Describe how bond markets work.
2. Discuss the different options in the bond market available for consideration.
3. Explain why bonds could be of benefit to Stupendous Bank.
4. Candidly explain the risks to the board of directors including liquidity risks.
5. Consider the status of the bond market today and offer a recommendation about the use of this investment (with consideration to risk).