Exam 13: Investing Fundamentals

Karen Johnson paid $1,000 for a corporate bond issued by an oil and gas corporation.The annual interest rate for the bond is 3 percent. a.What is the annual interest amount for this bond? b.Since the annual interest for this bond is paid every six months or semiannually,how much will Karen receive for her bond each six months? c.If comparable,new bonds pay 5 percent interest,what is the approximate market value for Karen's oil and gas bond?

Matt Jackson is single and 24 years old.He has just graduated from college and obtained a job making $26,400 a year.Which one of the following investments would you recommend for his long-term investment program?

Which of the following statements is true regarding effective investment planning?

Bob and Mary Martin are both 35 years old.Although they graduated from college almost 15 years ago,they have never developed a diversified investment program.What extra money they had was invested in high-tech stocks that did quite well until the last five years.Then,with the economic downturn,they encountered major losses.How could asset allocation have reduced the dollar amounts of the Martin's losses?

Which type of risk affects only a specific company or a specific industry?

In how many of the years since 1926 have stocks lost money?

A line of credit is a short-term loan that is approved before the money is actually needed.

Unsuccessful products or poor corporate management may result in investors experiencing ______________ risk.

It is suggested that you allocate a percentage of your assets to growth investments based on the:

To manage a financial crisis,many experts recommend that you take action to make sure your financial affairs are in order.Name and describe six steps you can take to safeguard against a crisis:

An intermediate-term investment goal is defined as one that will be accomplished within a period of: