1.In response to a question from her manager regarding bond markets, Celestila Moonn, an UMB intern at SchoolStreet, Inc. made the following statement: Bond markets are markets in which bonds are issued and trade. By purchasing either the U.S. Treasury Bonds or Greek Government Bonds, I can lend money to the U.S. Treasury or Greek Government. Since bonds are amortized security, I do not have to wait until maturity to get interest payments and the principal amount back from the Greek Government. So there is no default risk. QUESTION :discuss whether Moonn is correct with respect to Greek Government bond and amortized security. 2. Stocks are known as “equities” because each stock share represents a small percentage of ownership in the company. When you invest in stocks, you accept the risk that your investment may decline as well as rise in value; however, unlike preferred stock, common stock always pay dividends quarterly. QUESTION:Do you think Dr. Lee was correct to disagree with Moonn? Briefly discuss if you agree with Moon. 3.Celestila Moonn, an UMB intern at SchoolStreet, Inc, opens The Wall Street Journal and finds that in Japan the capital markets surged recently, benefiting from Prime Minister Shinzo Abe and the Bank of Japan’s aggressive policies designed to stimulate economic growth and lift the country out of deflation. Moon was wondering in response to these polices, whether Japanese yen will appreciate or depreciate relative to U.S. dollar. In order to clear her concepts on foreign exchange markets, Moonn opens the readings on “Foreign Exchange Markets” and after completing the readings, Moonn ponders whether the exchange rate changes between the U.S. dollar and the Japanese yen necessarily good or bad for Japanese automakers. QUESTION: In your initial post, briefly discuss if you agree with Moon.
