1. All markets have certain characteristics in common, whetherits stocks, bonds, commodities or some of the less liquid assetmarkets, such as artwork. Please state what you think are the threemost important and why.(The “why” is more important than the actualcharacteristics). These characteristics are liquidity,transparency, and regulation. You can throw in wealth.

2.From the perspective of an operating corporation which couldbe both an investor and an issuer, what are the major differencesbetween real and financial assets? Make sure that your answeraddresses this question from the perspective of the company’sbalance sheet.

3. The advantages of owning common stock are very similar to thedisadvantages. Discuss the advantages and disadvantages of commonstock ownership relative to other investment alternatives, focusingon no more than three such characteristics.

4.You purchased a semi-annual pay zero-coupon bond with atwo-year final maturity. The yield to maturity that you realized onthe purchase is 10%, What price did you pay for the securityassuming that the transaction had to be paid for on the same daythat you agreed to purchase the bond. (That is called a cashsettlement). At the end of one year, you become worried about theissuer’s credit quality, so you decide to sell the bond. The marketyield that you realized on sale was 15%. What price were you paidfor the bond? Again, assume a cash trade. By holding this bond forone year, how much money did you make? How much of those funds wereinterest and how much was the return of principal upon thesale?

Please answer as many questions as you can this would be greatlyappreciated! Please explain your answer as in-depth as possible