management question 22 Moving to another question will save this response. Assum

ID: 2737166 • Letter: M

Question

management question 22

Moving to another question will save this response. Assume that you are an INVESTOR, which of the following bonds are the most beneficial for YOU in the following situations (do not over think this question): inflation is unpredictable a company made dollar 150 million, way over expected dollar 70 million company's stock grows 2% a day interest rates rise (up to 5%), while you own a bond with a lower interest rate (4%) interest rates decline (down to 4%), while you own a bond with a higher interest rate (5%) Convertable bonds Putable bonds Callable bonds Indexed bonds Income bonds

Explanation / Answer

Convertable bonds

B. A company made $150 million, way over expected $70 million

Putable bonds

D. Interest rates (up to 5%) while you own a bond with a lower interest rate (4%)

callable bonds

A. Inflation is unpredictable

indexed bonds

E. Interest rates rise (up to 5%), while you own a bond with a lower interest rate (4%)

Income bonds

C. Company's stock grows 2% a day