How do interest rates in the economy affect the price of a corporate


Student Name

Allied American University







Directions: Using Microsoft® Word to save and submit your work, please provide detailed and elaborate responses to the following questions.  Your responses should include examples from the reading assignments.


1.     How do interest rates in the economy affect the price of a corporate bond?

2.     You are trying to evaluate two bond issues.  One bond issue is rated “A” by Moody’s; the other is rated “B.”  How important are the bond ratings issued by Moody’s Investors Service?  Based on your feedback, would you purchase the “A” bond or the “B” bond?

3.     If your primary goal is current yield, which one of these bonds is the wiser investment?  Bond A: $1,000 corporate bond that pays 7 percent and has a current market value of $800; or Bond B: $1,000 corporate bond that pays 8.25 percent and has a current market value of $950?

4.     Why do investors purchase mutual funds instead of purchasing stocks, bonds, or other investments on their own?

5.     Your parents are considering the purchase of shares in a mutual fund.  Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

6.     In what ways can a bond investor make money?

7.     Define five of the following six terms: (1) corporate bond (2) bond indenture (3) trustee (4) mortgage bond (5) debenture bond (6) convertible bond.

8.     Bonds are generally considered a relatively safe investment.  How is it possible to lose money on bonds?

9.     What is the difference between a U.S. government Treasury bill, Treasury note, and Treasury bond?

10.  Corporate and Treasury bonds generally produce more interest revenue than municipal bonds.  Why do investors choose to buy municipal bonds?

11.  Describe either the purchase options or withdrawal options that can be used to invest in or withdraw money from the investment company that sponsors an open-end mutual fund.

12.  Cindy and John Appleby just inherited $30,000 and would like to invest the money in a conservative mutual fund.  Since they have never invested in mutual funds, they ask for your help.  In your own words, describe the sources of information available for evaluating a mutual fund investment.

13.  Explain the difference between a load fund and a no-load fund.  From a performance standpoint, is there a significant difference between mutual funds that charge commissions and those that do not?




Write a 1-page, double-spaced paper in 12 pt. font answering the following question.  Please use APA format.


1.     You are considering purchasing shares in a mutual fund.  Discuss three advantages and three disadvantages of mutual fund investing that you believe are important for potential investors to consider.

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers

We value our clients. For this reason, we ensure that each paper is written carefully as per the instructions provided by the client. Our editing team also checks all the papers to ensure that they have been completed as per the expectations.

Professional Academic Writers

Over the years, our Acme Homework has managed to secure the most qualified, reliable and experienced team of writers. The company has also ensured continued training and development of the team members to ensure that it keep up with the rising Academic Trends.

Affordable Prices

Our prices are fairly priced in such a way that ensures affordability. Additionally, you can get a free price quotation by clicking on the "Place Order" button.

On-Time delivery

We pay strict attention on deadlines. For this reason, we ensure that all papers are submitted earlier, even before the deadline indicated by the customer. For this reason, the client can go through the work and review everything.

100% Originality

At Essay USA, all papers are plagiarism-free as they are written from scratch. We have taken strict measures to ensure that there is no similarity on all papers and that citations are included as per the standards set.

Customer Support 24/7

Our support team is readily available to provide any guidance/help on our platform at any time of the day/night. Feel free to contact us via the Chat window or support email:

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Essay USA has stood as the world’s leading custom essay writing services providers. Once you enter all the details in the order form under the place order button, the rest is up to us.


Essay Writing Services

At Essay USA, we prioritize on all aspects that bring about a good grade such as impeccable grammar, proper structure, zero-plagiarism and conformance to guidelines. Our experienced team of writers will help you completed your essays and other assignments.


Admission and Business Papers

Be assured that you’ll definitely get accepted to the Master’s level program at any university once you enter all the details in the order form. We won’t leave you here; we will also help you secure a good position in your aspired workplace by creating an outstanding resume or portfolio once you place an order.


Editing and Proofreading

Our skilled editing and writing team will help you restructure you paper, paraphrase, correct grammar and replace plagiarized sections on your paper just on time. The service is geared toward eliminating any mistakes and rather enhancing better quality.


Technical papers

We have writers in almost all fields including the most technical fields. You don’t have to worry about the complexity of your paper. Simply enter as much details as possible in the place order section.