Suppose that you are a broker and people tell you the following about themselves. What sort of bond would you recommend to each? Defend your choices.
a. "I am in a high federal income-tax bracket and I don't want to take very much risk."
b. "I want a high return and I am willing to take whatever risk necessary to get it."
c. "I want a decent return and I have enough deductions that I don't value tax breaks highly."

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The Answer of Suppose that you are a broker and people tell you the following about themselves. What sort of bond would you recommend to each? Defend your choices.
a. "I am in a high federal income-tax bracket and I don't want to take very much risk."
b. "I want a high return and I am willing to take whatever risk necessary to get it."
c. "I want a decent return and I have enough deductions that I don't value tax breaks highly."

Suppose That You Are a Broker and People Tell You