Identify a zero-coupon bond that has a convertible feature

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Reference no: EM13874256

PART 1

1. Briefly discuss how "stripped bonds" are "manufactured," and how these issues are priced to be competitive.

2. Explain why investors should exercise caution in selecting target-maturity funds.

PART 2

1. Identify a zero-coupon bond that has a convertible feature.

2. Discuss the tax implications of investing in zeros in a taxable account.

3. How might zero-coupon bonds be utilized by a parent looking to save enough dollars to fund a college education for his daughter?

PART 3

1. Briefly discuss how deposits and premiums paid to an insurance company factor into the purchase of GICs that are held by it

2. Discuss how the term "Guaranteed" might be misunderstood by individuals looking for a safe and secure investment

3. 3. Explain how an investor's expectation of future interest rate movements might influence his choice of GIC type

Reference no: EM13874256

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