Stella Flier Has Received an Inheritance of $100,000

question 1

Essay

Stella Flier has received an inheritance of $100,000.She is trying to decide what to do with this money and has come to you for some advice.She has an excellent credit rating and no outstanding debts.She would like to buy a $225,000 house and invest $100,000 in bonds as a safety net.
Required:
What would you recommend to Stella,and why,assuming only the facts given?

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