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.
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.