1. Suppose there are two bonds, of which Bond A is a 20-year bond with a coupon rate of 5% and Bond B is a 5-year bond with a coupon rate of 10%. Which of these two bonds has a higher price risk?
2. Use the Fibonacci sequence to explain why a stock price may exhibit a head and shoulder pattern.
3. Are there any similarities between a firm’s capital budgeting decisions and an individual’s investment decisions?