Grantham Week 6 Mitigating Risk of Interest Rate Risk Discussion

WEEK 6: Discussion Prompt #1 – Interest rate risk is the risk that changes in interest rates (in the U.S. or other world markets) may reduce (or increase) the market value of an investment that you might hold. As an investor now or in the future, what are steps that you would take to mitigate the risk of interest rate risk? Do you believe age and current economic status play a role in how much interest rate risk investors can tolerate? Discuss your reasoning.

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WEEK 6: Discussion Prompt #2 – Compare and contrast the decisions that are consistent with the firm’s share price maximization goals. In your response, provide at least two peer-reviewed sources to support your answers. As we have discussed, one of the main goals of the organization is to maximize the profits in the organization to increase the firm’s share price. Consider your own organization or a previous organization, what goals were set to maximize the profits? Did these goals come at the “cost” of other important goals for the organization? Discuss your experiences.

Click here to access the MSSB discussion forum guidelines and grading rubric.

Tax-Individual

Sections 1245 and 1250 were enacted to close the loophole that resulted from allowing depreciation deductions on assets to offset ordinary income while taxing gain from the sale of these depreciated assets as capital gains. Sections 1245 and 1250 closed the loophole by recharacterizing part or all of the gain on transfers of depreciable assets as ordinary income. Explain how this is accomplished.

Each threaded discussion question should be answered in no less than 250 words and two external sources cited. The student is then required to reply to at least two other students or the instructor with a 100 word reply with one external source cited.