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Tpy6a [65]
2 years ago
10

Katrina received $2000 as a graduation gift. She is heading off to college in the fall and the money will be used to pay for sch

ool expenses. She is unsure if she should save or invest the money. Describe the difference between saving and investing and give Katrina your advice on what she should do with the gift of money.
Business
1 answer:
Irina18 [472]2 years ago
8 0

The differences between saving and investing are:

Money can more easily be withdrawn when money is saved than when money is invested.

There is little or no risk of loss of money when money is saved. Money can be lost when invested.

My advice to Katrina would be to save her gift.

<h3>Why should Katrina save her money? </h3>

Katrina needs her money in the short term. Thus, it is better to save because it would be easier to withdraw her account from a savings account when compared to an investment account.

Money that should be invested should be money you don't mind losing. This is due to the risk associated with investing. Katrina needs the money to pay for her school expenses. This makes investing an impractical idea.

To learn more about investing, please check: To learn more about treasury notes please check: brainly.com/question/26164549

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Answer:

The bond's yield to maturity is greater than its coupon rate.

Explanation:

At a discount, the price of the bond is less than its face value, from bond theory principles, this is likely to happen when YTM is more than the coupon rate of the bond. Due to this the present value of the coupons and their face value are going to be lower than 1000 since YTM is greater.

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The bond's yield to maturity is greater than its coupon rate.

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When the world price of some good is above the domestic price (before trade), then after trade, that nation will likely be:
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