Passive Bond Management

Question 1

Pros and Cons of Going Public

Much attention has been paid to LinkedIn’s recent IPO. After conducting independent research on the IPO via the web (Note: Stick to sound sources such as Yahoo! Finance, the Wall Street Journal, MSNBC, etc.), address the following questions: What were some advantages to LinkedIn going public? Were there any disadvantages?

Question 2

For your new client(s), outline the basic goals for the portfolio (for example: saving for retirement; down payment for home, etc). For each goal, a brief discussion is required for the type of investments will be suitable for that goal. The investment categories that can be used for the goals are: Stocks, Bonds, and Short-term (Cash) Investments. Please refer to the Beginner’s Guide to Asset Allocation under the Chapter 1 Material to see a discussion about these three investment (asset) categories.

Page limit: one page

Question 3

1. What are the key features of a bond? What is interest rate risk?

2. Which bond has more interest rate risk, an annual payment 1-year bond or a 10-year bond? Why?

3. Discuss and compare the passive bond management and active bond management