Find information about the following topics: Value and the characteristics of bonds and stocks. Prepare a summary of these topics and bring it to class.
Answer the following questions: (50 points)
What are the basic differences between book value, liquidation value, market value, and intrinsic value?
What is the difference between the par value of a bond and the market value of a bond?
Explain the difference between the bond’s coupon interest rate with the current yield, and bondholder’s required rate of return.
Distinguish between debentures bonds and mortgage bonds.
Define
eurobonds
zero coupon bonds
junk bonds
Why the dividends of preferred stock are paid before the dividends of common stocks?
Define rate of return of an investment that could be the actual or expected.
Find information on how to invest in stocks and bonds. Summarize the steps and be prepared to discuss them in class.
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