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For Each of the Following Assets,discuss All of the Essential

Question 112

Essay

For each of the following assets,discuss all of the essential aspects of return,risk,and other factors,such as marketability,that investors should consider before the asset:
a. three-month T-bills
b. a 20-year, 8% coupon corporate bond selling for 65 (don't calculate the yield to maturity)
c. municipal bonds
d. a house in the suburbs
e. a 20-year, 15% mortgage on a house in the suburbs (i.e, you would be the lender)
f. U.S. Treasury 10 5/8s of 2015

Correct Answer:

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a.T-bills are short term securities issu...

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