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Bond Issue: Your 55 year old parents have been saving for retirement many years and have built up a nest egg of $1,000,000 in cash and equity investments. They are considering retiring in 10 years and are wondering whether to invest some or all of their retirement savings in the bond market because they feel it is less risky than the stock market. Bond interest rates currently are at historical lows and are expected by some financial analysts to rise in the next decade.

What would you suggest they do?

Do you agree that bond investments are less risky than equity investments?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92387079

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