Treasury bonds are considered safer than corporate bonds

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Reference no: EM131831181

1. Your uncle has $955,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the account?

a. $77,305.56

b. $79,696.46

c. $90,057.00

d. $61,366.27

e. $74,914.67

2. Treasury Bonds are generally considered safer than Corporate bonds. Yet both types of fixed income instruments are subject to some sources of risk. Which sources of risk typically affect the price of domestic Corporate Bonds more than Treasury Bonds.

Interest rate risk and Liquidity risk

Exchange risk and Interest rate risk

Liquidity risk and Default risk

Exchange risk and Default risk

Reference no: EM131831181

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