Investment Strategy Quiz
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Questions and Answers

According to the information provided, what is the objective of investing $300,000?

  • To earn a fee equal to the yield-to-maturity on the 5-year Treasury
  • To save $475 per month
  • To grow it to $521,000 in 5 years (correct)
  • To buy a house with a $221,000 gain

    • What is the fee that must be paid for the $300,000 investment?

  • $475 per month
  • 4.68%
  • $221,000
  • The yield-to-maturity on the 5-year Treasury (correct)

    • What is the current yield-to-maturity on the 5-year Treasury?

  • 4.21%
  • 4.68% (correct)
  • Fall 2022
  • 1.06%

    • What is the average annual rate of return on a bond if held to maturity?

    <p>Yield-to-maturity</p> Signup and view all the answers

    What must be the monthly rate of return on the portfolio to reach the $521,000 objective, ignoring the fee?

    <p>Not provided in the text</p> Signup and view all the answers

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