Bonds, also called fixed-income securities, provide investors with successive income over a specific time frame at regular intervals. These securities are issued by a number of companies, municipalities, and government agencies.

There are unique tax liabilities for investor income derived from bonds and other fixed-income instruments, which affect overall holding period returns realized from these investments. In addition, there are varying levels of risk associated with holding these types of securities.

Select two types of bonds and compare the following between the two types selected:

What are the comparative levels of investment returns for each?

What are the relevant tax considerations applicable to the investment returns on each?

What are the comparative risk considerations between the two?

Annual percentage rate of prime rate plus : Your Office Supply has a $42,500 line of credit that charges an annual percentage rate of prime rate plus 3%. Their starting balance on March 1 was $10,600. On March 5, they borrowed $7,500. On March 14, the business made a payment of $3,300, and on .. |

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What are comparative levels of investment returns for each : Bonds, also called fixed-income securities, provide investors with successive income over a specific time frame at regular intervals. These securities are issued by a number of companies, municipalities, and government agencies. What are the comparat.. |

Line of credit which charges an annual percentage rate : You have a $22,500 line of credit which charges an annual percentage rate of prime rate plus 5%. Your starting balance on April 1 was $6,750. On April 5, you made a payment of $2,500. On April 14, you borrowed $5,100, and on April 17, you borrowed $3.. |

Consider the cash flows : Consider the following cash flows: Year Cash Flow 2 $ 21,600 3 39,600 5 57,600 Assume an interest rate of 8.4 percent per year. Requirement 1: If today is Year 0, what is the future value of the cash flows five years from now? Requirement 2: If today.. |

What was the annual percentage increase : In 1901, the first U.S. Open Golf Championship was held. The winner’s prize money was $210. In 2012, the winner’s check was $1,410,000. Requirement 1: What was the annual percentage increase in the winner’s check over this period? ** I've answered Re.. |

Eliminate any further possibilities of locational arbitrage : What market forces would occur to eliminate any further possibilities of locational arbitrage? |

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