1. How does Federal budget deficit affect interest rates? What about Federal budget surplus?
2. What are the benefits, costs and risks of an aggressive funding strategy and of a conservative funding strategy?
3. Mackery, Inc., has an outstanding issue of preferred stock that pays a $5.94 dividend every year. If this issue currently sells for $117.1 per share, what return to market investors require on it currently?
4. What are the cash flows associated with a bond? What are important bond features and why do values and yields fluctuate?