Answer Happy

Shella wants to develop a bond portfolio that provides her with a regular incom stream and a high degree of liquidity. However, she also wants to diversify her holdings by investing in bonds with different maturities. She is a conservative Investor who prefers a passive investment approach. Which of the following Investment strategies would you recommend to Sheila? OA) A bond matching strategy. OBA B) A laddered strategy. Riding the yield curve. D) A bond immunization strategy.

How is the marginal tax rate calculated? ? A) Divide employment income by the total of non-refundable tax credits. B) Divide the change in tax payable by the change in income. C) Divide total income by the tax rate. D) Divide the total amount of tax paid by the amount of taxable income.

Determine the individual who would have the smallest taxable income in the Canadian tax system. OA A) Scott: $40,000 employment income, $10,000 capital gains income. 515,50 business Income. B) Rob: $50,500 employment income, $15,000 capital gains income. bo Marg: $60,000 employment income, $5,000 interest income, $500 capital gains income. DD) Maret: $55,500 employment income, $10,000 capital gains income.

Emily owns XYZ bond that has a duration of 5 and ABC bond that has a duration 7. If the market interest rate increases by 2%, which of the following statements would typically be true? A) The price of both bonds would increase by a similar amount. B) The price of both bonds would decrease by a similar amount. а C) Bond XYZ will experience a larger price decline than bond ABC. D) Bond XYZ will experience a smaller price decline than bond ABC.