How do stocks and bonds differ?

Stocks are good for income while bonds are good for long-term growth.

Stocks may help you protect your money from inflation while bonds may be more susceptible to losing their value over time due to inflation.

Stocks are loans you give out to corporations and get paid back with interest; bonds are shares of a company that you own.

Stocks are low risk while bonds are high risk.

Biochemical corp. requires $600,000 in financing over the next three years. the firm can borrow the funds for three years at 10.80 percent interest per year. the ceo decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.50 percent interest in the first year, 12.15 percent interest in the second year, and 8.25 percent interest in the third year. assume interest is paid in full at the end of each year. a)determine the total interest cost under each plan. a) long term fixed rate: b) short term fixed rate: b) which plan is less costly? a) long term fixed rate plan b) short term variable rate plan