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The Cash Flows That Come from Investing in Stocks and Bonds

Question 174

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The cash flows that come from investing in stocks and bonds appear similar in that they both consist of a stream of relatively small payments followed by a single larger payment. The smaller payments are dividends for stocks and interest for bonds, while the larger ones are the eventual selling price of stock and the return of principal for a bond. Critically evaluate this apparent similarity

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The similarity between the cash flows fr...

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