Your friend wants you to seriously consider investing in bonds like she did. Why?
What will be an ideal response?
Answer: When interest rates decline, the price of bonds rises. Bonds reduce risk through diversification. Bonds also produce steady current income. They can be a safe investment when held for the long term to maturity.
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Assets and liabilities on the balance sheet are classified as
A) personal and business. B) short-term and long-term. C) fundamental and discretionary. D) secure and insecure.
Ewok Enterprises recently elected the fair value option to account for its investment in Yoda Inc. Ewok purchased the shares for $210,000 and the shares are currently trading for $195,000 at year-end. Record the journal entries needed to purchase the investment, then adjust it to fair value. Then, show how this investment will be reported on the balance sheet
What will be an ideal response?