Importance of Investing in Bonds

24. DISCUSSION 1: As we have learned from the readings, there is an inverse relationship between bond prices and interest rates. Given the current economic situation and the forecast of interest rates, would you invest in bonds? Why or why not?
Be sure to rely on sources and cite your references in APA format.
DISCUSSION 2: It can be said that the mortgage market was at the center of the Credit Crisis of 2008. The emergence of subprime loans and the demand for subprime loans caused the creation of new financial products.
Describe how Mortgage-Backed Securities (MBS) were used throughout the Credit Crisis and compare their use then to their use today. For example, do you believe MBS’s are riskier than people thought?

Prices for bonds tend to fall when interest rates rise. Prices for bonds are generally lower as interest rates increase and increase or fall. The opposite relationship between rates of interest and bond prices is a bit baffling initially. However, when you consider it, it’s a perfect sense (Agliardi and Agliardi 2019). Bond investors, as investors in any other field generally seek to maximize their chance of earning (Maltais Nykvist and Maltais, 2020). This means that they have to be aware of the fluctuating rate at which they can take out loans to be successful. The zero-coupon bond, which do not pay interest on a monthly basis however, they derive its value through the gap between the purchase price in addition to the principle amount that is due at the time of maturity, is an easy explanation of how bonds’ prices fluctuate in the opposite direction to yields for bonds (Agliardi and Agliardi, 2019). I am a sucker for bonds as an investment since they give me a steady return on my investment. The majority of bonds come with the option of a semiannual interest schedule. Bonds are a kind of investment that will allow you to save cash due because you can earn your initial investment back when you keep bonds until they is mature. Bonds are an insurance policy against the risk of equity investments. Cont…

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more