HELP!!! Is there anyone that can help me with my Finance homework?

I have WHAT in my yard? :

This link

https://personal.vanguard.com/us/insights/article/bond-webcast-QA

Is a much better definition of bonds! And it is pretty straightforward writing. Use language like this.



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Do me a big fav though and don't cut and paste. That's plagiarism and it is one of my major pet peeves.



YOu got the basics of the assignment down it sounds like. I am off to put my kids to bed so this is it for me. Let me know how it goes!

Oh, I don't plagiarize. It's a pet peeve of mine too. I will quote, because it's allowed, but I try to write as much in my own words as absolutely possible. I'll take a look at that site now and see what I can figure out. Thanks. I don't expect a high grade (you'd have to deal with this particular teacher to know what I mean), but I'd be happy with another C. C is passing, and as long as I don't have to repeat this class, I'm happy!​
 
Bonds are relatively safe if held until maturity, but bond funds are not since the fund managers will often buy and/or sell bonds at a discount or at a premium.

I have WHAT in my yard? :

According to www.investopedia.com “a bond is a form of debt with which you are the lender instead of the borrower. Bonds are contractual loans made between investors and institutions that, in return for financing, will pay a premium for borrowing, known as a coupon. Additionally, the bond's face value is returned to the investor at maturity. The guarantee of payback and all coupon payments relies solely on the ability of the borrower to generate enough cash flow to repay bondholders.” What this means for Cliff is that the only way he’ll generate a profit on his investments is if the borrower is able to generate enough cash flow. If the stock takes a nosedive, Cliff loses money. If the borrower can’t generate enough money with the bonds, Cliff loses money. It’s a gamble, especially with his poor research of which ones to invest in. Just because they sound good on paper doesn’t mean that they actually are good. He should have researched each one very carefully before investing anything.

This is the only part I have issue with. This makes it sound as if you think bonds are as risky as stock when they really aren't. Try looking for a definition of bonds from a better site. If you are concerned he can always be looking at government bonds. (IRL a bad bet now, but this is a class.) It is fairly rare to lose on bonds, that is why people don't go solely with bonds; you get safety in return for a fairly low return. And investors don't need to wait for the bond to mature; in many cases they can sell the bond to some one else. If the bonds are part of a larger fund the investor can remove his money while the fund retains the bond. Since your hypothetical dude is young he doesn't need to go big into bonds.




Again, remember this is investing basics, not current market analysis. Whole different ball of wax right now with bonds in a overbought bubble since people were seeking their safety. I still have one bundle of bonds that are going on the market this week coming. Ask me in 6 months if I timed it right!
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