Discuss the concept of risk and diversification and


Question 1: Diane Carter is interested in buying a five-year zero coupon bond with a face value is $1,000. She understands that the market interest rate for similar investments is 9 percent. Assume annual coupon payments. What is the current value of this bond?

Question 2: Discuss the concept of risk and diversification and highlights types of risk correlation within portfolio with more than one asset?

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Finance Basics: Discuss the concept of risk and diversification and
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