Sophia Principles of Finance Milestone 2 Already Passed

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Sophia Principles of Finance Milestone 2 1 Select the best definition of an ordinary annuity. An annuity whose payments can be made at any point during the period An annuity whose payments are m... ade at the beginning of the period An annuity whose payments are made at the end of the period An annuity that makes payments forever CONCEPT Annuities 2 Bill wants to buy a bond whose face value is substantially higher than its market price. What kind of bond should he buy? Inflation-linked Asset-backed Zero-coupon Government CONCEPT Types of Bonds 3 Which of the following is a disadvantage of bonds for a potential investor? They have less legal protection than stocks. Bondholders risk a significant price drop if a large number of bonds are sold at once. Some bonds can be redeemed early by the issuer. They are more likely than stocks to end up valueless if a company goes bankrupt. CONCEPT Advantages and Disadvantages of Bonds 4 Select the pairing that is correctly matched. Common stock: may only be sold on the secondary market Preferred stock: the value of the stock is not affected by market factors [Show More]

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