Identify a zero-coupon bond that has a convertible

Question

PART 1

1. Briefly discuss how "stripped bonds" are "manufactured," and how these issues are priced to be competitive.

2. Explain why investors should exercise caution in selecting target-maturity funds.

PART 2

1. Identify a zero-coupon bond that has a convertible feature.

2. Discuss the tax implications of investing in zeros in a taxable account.

3. How might zero-coupon bonds be utilized by a parent looking to save enough dollars to fund a college education for his daughter?

PART 3

1. Briefly discuss how deposits and premiums paid to an insurance company factor into the purchase of GICs that are held by it

2. Discuss how the term "Guaranteed" might be misunderstood by individuals looking for a safe and secure investment

3. 3. Explain how an investor's expectation of future interest rate movements might influence his choice of GIC type

Answer 1

Need to be answer all questions in a word document file using Arial Black font by applying all the rules followed by APA. Q1. In brief illustrate how ‘stripped bonds’ are ‘manufactured’, and how such issues are priced to be competitive. Q2. Describe why investors must exercise caution in choosing the target-maturity funds. Q3. Recognize a zero-coupon bond that consists of a convertible feature. Q4. Illustrate the tax implications of investing in zeros in a taxable account. Q5. Explain how might zero-coupon bonds be used via a parent looking to save adequate dollars to fund the college education for his daughter? Q6. In brief illustrate how deposits and premiums paid to an insurance company factor in the purchase of GICs that are held by it Q7. Illustrate how the word ‘Guaranteed’ may be comprehended by individuals search for a safe and secure investment.