investment consultant , Financial Management

Assignment Help:
Suppose, you are working as an investment consultant in a consultancy firm and most of your clients are habitual investors, who are maintaining their own portfolios comprising of various combinations of stocks and bonds.

Mr. Zahid, a habitual investor comes to you for consulting about adding one more potential investing option to his existing portfolio. Currently, as per your analysis, there are two bonds available in the market with the following data:

Bond A Bond B
Maturity 3 years 8 years
Coupon payment 10% Annual 10% Semiannual
Yield 6.23% 9.8%

*Note: Interest rate fluctuations are high in the market

Required:
• Suggest Mr. Zahid, who is interested to add only one bond to his portfolio about the suitable bond for his portfolio.
• Support your choice by elaborating the reason on which the suggested bond is considered as a preferred option.


Related Discussions:- investment consultant

Financial Management, BigGardens Ltd (BigGardens) is a private company that...

BigGardens Ltd (BigGardens) is a private company that owns and operates a chain of garden centres in the Bristol area. The company has expanded rapidly over recent years, opening

Business organization, what business organization do you preffer ? service ...

what business organization do you preffer ? service concern,trading concern or manufacturing concern

Price hike, should a company pursue price hike or focus on increased sales

should a company pursue price hike or focus on increased sales

Explain how management goals are incorporated into pro forma, Explain how m...

Explain how management goals are incorporated into pro forma financial statements. Management locates a target goal, and forecasters produce pro forma financial statements within

Distinguish between a credit card and a debit card, QUESTION (a) What a...

QUESTION (a) What are the main benefits of E-Banking to customers and banking institutions? (b) Internet Banking products and services are of two primary types, informationa

Swiss variable rate mortgage, A Swiss Variable Rate Mortgage (S...

A Swiss Variable Rate Mortgage (SVRM) is a version of ARM which carries a coupon rate that a bank can change any time giving a notice of three m

Beta value, Beta Value Risk is an important consideration while investi...

Beta Value Risk is an important consideration while investing in any security. It is the possibility that realised returns will be less than the returns expected. The degree, t

Income statement and balance sheet, The following are extracts of the Incom...

The following are extracts of the Income Statement and Balance Sheet for Umar plc. Extract Balance Sheet at 30 June 20X2               20X1 £'000  £'000                £

White knight, A friendly potential acquirer sought through a goal organizat...

A friendly potential acquirer sought through a goal organization threatened by a less welcome suitor.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd