Consider the Following Four Investors

question 74

Essay

Consider the following four investors. Rank each according to who has the most to gain from investing in 30-year tax-exempt municipal bonds. Each investor has $1,000 in a savings account that he/she plans to use to buy bonds. Explain briefly why you ranked the investors this way.
(a) A 20-year old college student who earns low income through working over summers and breaks. The student plans to graduate next year.
(b) The CEO of a large company who is currently in the highest tax bracket. (c) A middle-income household saving up to move into a larger home.
(d) A 60-year old nurse who plans to retire at age 62. He uses a tax-exempt pension fund for all of his savings.

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Definitions:

Contingent Workers

Employees who do not have long-term contracts but are hired on a temporary basis, often to meet seasonal demands or short-term projects.

HR Costs

Expenses associated with the human resources department, including recruitment, salaries, benefits, and training.

HR Forecasting

Determining the net requirement for human capital by assessing the demand for and supply of human resources now and in the future.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it, and receive cash from the sale.