Amanda Sings is a financial adviser to a number of large institutional investors. She has determined five bond types which may be potential investments, suitable for her clients’ needs • Index-linked bond • Eurobond
Amanda Sings is a financial adviser to a number of large institutional investors. She has determined five bond types which may be potential investments, suitable for her clients’ needs
• Index-linked bond
• Eurobond
• Floating rate note
• Zero-coupon bond
• Municipal bond
For each of the following clients, select the single bond type from the above list, which you consider most suitable, justify your selection in a single sentence
1. An investment fund which has expectations of a significant rise in interest rates in the future
2. A pension fund which pays future pensions uplifted by the Consumer Price Index (CPI) each year
3. A small pension fund, with limited human resources, seeking a long term investment with minimal need for monitoring and re-investment activity.
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