Answer to Question #145825 in Finance for Sameer

Question #145825

Your broker calls to offer you the investment opportunity of a lifetime, the chance to invest in 10 year long-term debt instruments issued by AAA rate Commercial bank. The broker explains that these bonds are entitled to the principal and interest payments but not backed by any security or pool of assets.

Requirements:

List down any four questions you would ask your broker to assess the risk of this investment opportunity?


1
Expert's answer
2020-11-24T06:27:05-0500
  • Why is this investment suitable for me? ...
  • What has to happen for this investment to be profitable? ...
  • What is the worst-case scenario if I make this investment? ...
  • How liquid is this investment? ...
  • Are there any comparable investments that would cost less?

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