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In: Accounting

Corporate Bonds represent an attractive asset class to the fixed-income investor. Discuss your experiences with interest...

Corporate Bonds represent an attractive asset class to the fixed-income investor. Discuss your experiences with interest generating fixed-income investment assets. Do not be bashful or intimidated; either an interest bearing saving account, or a 30/60/90 day Certificate of Deposit (CD) are considered interest-bearing investments for the purpose of this discussion.

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Answer:

Selection of investment option relies upon the hazard preference and financial necessities or requirements of the investors. Fixed income securities give low however ensured returns when contrasted with development protections like stocks, which give high yet questionable or uncertain returns. Out of the accessible fixed income securities, corporate securities are an attractive investment avenue which gives high pace of fixed interest. Decision of fixed income securities rely upon the liquidity necessity of the investor.

As a investor I favor fixed income securities for venture (or) investment in light of my tendency of hazard avoidance. I am having numerous duties to satisfy so I am not in a situation to go for risk with my cash so I put resources into fixed income securities. I like to contribute just for present moment on account of limited amount of reserve funds accessible with me. So I lean toward interest in Certificate of Deposit (CD) which is a good short term investment option with attractive interest rate. Venture period in Certificate Of Deposit (CD) can be of 30, 60 or 90 days so Maximum days the investment is blocked are 90 days.


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