investment consultant , Financial Management

Suppose, you are working as an investment consultant in a consultancy firm and most of your clients are habitual investors, who are maintaining their own portfolios comprising of various combinations of stocks and bonds.

Mr. Zahid, a habitual investor comes to you for consulting about adding one more potential investing option to his existing portfolio. Currently, as per your analysis, there are two bonds available in the market with the following data:

Bond A Bond B
Maturity 3 years 8 years
Coupon payment 10% Annual 10% Semiannual
Yield 6.23% 9.8%

*Note: Interest rate fluctuations are high in the market

Required:
• Suggest Mr. Zahid, who is interested to add only one bond to his portfolio about the suitable bond for his portfolio.
• Support your choice by elaborating the reason on which the suggested bond is considered as a preferred option.

Posted Date: 11/27/2012 11:45:40 AM | Location : Pakistan







Related Discussions:- investment consultant , Assignment Help, Ask Question on investment consultant , Get Answer, Expert's Help, investment consultant Discussions

Write discussion on investment consultant
Your posts are moderated
Related Questions
#question application of an operating.cycle in vegetable growing business.

One of the well-known soccer clubs in Australia, Sydney, has made a decision to include its players on the club's statement of financial position as assets. These players are signe

Alger Corp wants to buy some construction equipment for $50,000, which has a useful life of 4 years with no salvage value. Alger uses straight-line depreciation. Alger has a tax ra

Evaluate the extent to which the Balanced Scorecard: The Balanced Scorecard has been described as an effective measurement system which enables managers of an organisation to

Explain the bird in the hand theory of cash dividends. The bird in the hand dividends theory state that dividends received now are better than a promise of future dividends.  U

Question 1: (a) Discuss the main limitations of using changes in national income as an index of economic welfare. (b) What are the alternatives measures and issues that sho

Part 1: Contingency plan Create contingency plans for the following scenarios: > One of your highly qualified consultants has given three months notice and is planning to move to a

Which currency has to be used in an international acquisition in order to calculate the flows? It can be completed in the local currency or in the currency of the parent compan

how do we get the pvif of a perpetuity

Examine about Environmental (external) analysis "A study that considers potential environmental effects during planning phase before an investment is made or an operation start