List five problems you may have with the proposal

Reference no: EM13198896

1. You are considering purchasing a tax free savings bond with a face value of $1000 in ten years. You are willing to invest as long as the equivalent interest rate keeps pace with CPI. What CPI will you use to evaluate your investment and what is the maximum you should pay for this bond?

2. You are negotiating a 5 year contract to supply engineering services for your company and the rates proposed for each new contract year are indexed to US CPI. List five problems you may have with this proposal and rank order them from Highest to lowest.

Reference no: EM13198896

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