Personal Finance Tax Update
Personal Finance Tax Update
13th Edition
ISBN: 9780357438947
Author: E. Thomas Garman; Raymond Forgue
Publisher: Cengage Learning US
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Chapter 5, Problem 8FPC

A

Summary Introduction

To determine: The other types of accounts that are available for investing.

Introduction:Selecting among the most suitable tools of monetary asset management is important in maximizing the interest earnings and minimizing the fees which is essential in growing deposits as well as for the safety of the money.

b.

Summary Introduction

To determine: Managing the accounts to earn as much interest as possible while keeping the money safe.

Introduction: It is important to maintain a balance between the savings as well as the expenses as bigger the savings the bigger the interest that an investor can earn. Proper selection of the tools of the monetary asset management is also important as per the investor’s requirement and capability.

c.

Summary Introduction

To determine: The usage of electronic money management to accomplish the tasks.

Introduction: Electronic money management offers its investors the superiority of conducting the transactions without any paperwork. Accordingly, money transfers and bill payments can be done through the electronic money management.

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9. Which of the following is true when a bond is trading at a discount?* Coupon Rate > Current Yield > Yield to Maturity Coupon Rate < Current Yield < Yield to Maturity Coupon Rate = Current Yield = Yield to Maturity Coupon Rate < Current Yield = Yield to Maturity.
When the price of a bond is above the face value, the bond is said to be* Trading at par Trading at a premium Trading at a discount Trading below par
7. What is a par value of a bond?* The amount borrowed by the issuer of the bond and returned to the investors when the bond matures The overall return earned by the bond investor when the bond matures The difference between the amount borrowed by the issuer of bond and the amount returned to investors at maturity The size of the coupon investors receive on an annual basis
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