1. Explain the difference between an interest-only loan and amortized loan, which would you prefer as a borrower?
2. Define liquidity risk, default risk, and taxability risk and explain how these risks relate to bonds and bond yields.
3. Explain the difference between common stock and preferred stock. Which one would you prefer as an investor?
4. Explain the differences and similarities between net present value (NPV) and the profitability index.
Need original 400 words on all combined, meaning all 5 in 400 words, so you can divide words accordingly.