The Dholakia Ditch Digging Company needs to raise capital. They offer a bond with coupon payments of $5,000 payable once every three years. The annuity lasts for exactly 30 years with the last payment occurring at the end of year 30. The first payment is made at the end of year three. Assume an annual interest rate of 7%. How much money can they raise today by issuing this bond

answer; conceptual skills;

the answer is: a greater percentage chance of loss

high risk investments had the characteristic of higher percentage of great return accompanied with higher percentage chance of loss.

this type of investments usually only suitable for investors that have enough capital to survive in case one or more of their investments fail. examples of high-risk investments are stocks and currencies.