1. Describe the various objectives in managing personal risk and how they are achieved.
2. Flora? Co.'s bonds, maturing in 8 ?years, pay 12 percent interest on a $1,000 face value.? However, interest is paid semiannually. If your required rate of return is 6 ?percent, what is the value of the? bond? How would your answer change if the interest were paid? annually?
3. A bank account provides 2.5% p.a. interest compounded annually. How much money will an investor need to invest so that the investment grows to $3,500 after 4 years?