Read the following scenarios. who is better positioned to invest in bonds and why?

jim is 24 and earns $62,000 a year. he wishes to invest for his newborn daughter's college education, which is 18 years away. inflation is currently running at 4.1%, while real interest rates are rising.

elizabeth is 63 years old and earns $137,000 a year. she wishes to invest for retirement, which is four years away. inflation is currently running at 1.1%, while real interest rates are falling.

select the best answer from the choices provided.
a.
jim is better positioned to invest in bonds because he makes less and has longer before his investment matures.
b.
jim is better positioned to invest in bonds because inflation is high.
c.
elizabeth is better positioned to invest in bonds because she has less time before her investment matures.
d.
elizabeth is better positioned to invest in bonds because real interest
rates are falling.

The correct answer is A. Jim is better positioned to invest in bonds because he makes less and has longer before his investment matures.

Step-by-step explanation:

Jim is better positioned to invest in bonds for two reasons:

1. He can invest and take advantage of long-term bonds, between 12 and 20 years of term of maturity, that are those that usually have the highest interest rate. His goal is to invest and save for his daughter's college education, that is a newborn.

2. The real interest rates are rising. It means the bonds interest rates are clearly above the inflation rate in the country where Jim and his family live, having a better return for his investment.

for finding the midpoint of any given 2 pair of points simply add the respective x coordinates with other x coordinate and the y coordinate with other y coordinate and divide them by 2

in your question it will be :

(3+1)/2 for the x coordinate of mid point i.e 2

[8+(-4)]/2 for the y coordinate of midpoint i.e 2

so coordinates of mid point of points (3,8) and (1,-4) will be (2,2)

1. is 4 and 2. is 3

step-by-step explanation:

so if you look at the first one you see that 1 is to 4 and 2 is to 8 and so on, so you can see for every 1 there is a times 4 so if it were 3 then it would be 3*4 and it is 12

for number 2 it is 3 because 1 is to 3 and 2 is to 6 so for every 1 there is 3 so if it were 3 then there would be 3*3 = 9