1. Explain what you learned about the relationship between interest rates and bond value. What makes interest rates change? Is it possible to lose money if you invest in bonds, even federal government bonds? Why or why not?
2. Why do you think Bernie Madoff was able to get away with his scheme for as long as he did? What does what he did teach you about the relationship of risk and return? What lessons fregarding his issues can you apply to your personal and professional lives?