You have a friend who wants to invest in bonds but doesn’t really know anything about...
You have a friend who wants to invest in bonds but doesn’t really know anything about them. What is the most important question you should advise your friend to consider before choosing a bond?
A : What do you want the par value of your bond to be?
B : What is the opportunity cost of purchasing each bond?
C : How will the current market interest rate affect the price of the bonds you are considering?
D : How much risk are you willing to take when buying a bond?
Homework Answers
What is the most important question you should advise your friend to consider before choosing a bond?
The answer is-
D : How much risk are you willing to take when buying a bond?
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