Tony plans to deposit $1,000 at the end of each of the next three years. If his funds earn 5% compounded annually, how much will he have at the end of three years?

Which of the following points out a hidden flaw in Darrell's thinking?

A) In addition to owning mutual funds, many young investors purchase individual stocks through discount brokers. B) While the stock market declined sharply in 2008-2009, it came back strongly in 2010-2011. C) In recent years, investments in precious metals have appreciated more quickly than many mutual funds. D) In the recent past, many securities rated as investment grade were, in fact, based on risky home mortgage loans and lost value. E) Municipal bonds often are not paid off all at once but instead are paid off gradually over a period of five years or more.

All of the following are uses of swaptions except

a. to speculate on interest rates b. to give a firm flexibility in future borrowings c. to borrow money d. to create callable from non-callable bonds e. none of the above