Trading Sites, Amortization Schedule, and the U.S. Treasuries

This final paper for the project paper due in week five will summarize the concepts covered throughout this semester. I chose to focus my research on Nike in response to the first week’s homework, which required that we analyze a publicly traded company. Both the “Economic Value Added,” commonly referred to as the “economic profit,” and the free cash flow were analyzed using the annual report that the company provided. We also investigated the company’s ROA (Return on Total Assets), which is defined as the ratio of net income to total assets, and its ROE (Return on Common Equity), which is defined as the ratio of net income to common equity.

During the second week of the course, I was presented with a hypothetical scenario in which I was required to calculate and evaluate the total monthly payments for a car loan and a mortgage, given that my monthly wage was $3,000 per month. You were allowed to spend 28% of your monthly salary on a mortgage if you made a 10% down payment on a home and a 3% down payment on a car. However, you were only allowed to spend 10% of your monthly earnings on a car loan if you made a 3% down payment.

During the third week of the assignment, we were tasked with evaluating numerous online brokerage accounts to purchase stock. We were to consider various factors, including account opening criteria, fees, minimum balances, and other services each brokerage account offers. We may easily access the information we need by going to the websites of the publicly traded firms that provide the majority of DIPs and DRIPs and conducting a search on the internet. Moving on to the fourth week, we researched and analyzed United States Treasuries, Municipal Bonds, and Corporate Bonds and examined the yield curves for each type of investment. Concerning the potential for fluctuating interest rates, I defended my decision to hold onto U.S. Treasuries.

In the fifth and final week, we will review and analyze three online trading sites, focusing on their prerequisites for trading and pricing per trade. Additionally, we will look at the amortization schedules we worked up for the auto loan and the mortgage on the house. In addition, we are to search for three firms that provide DIPs or DRIPs and reevaluate U.S. Treasuries, Municipal Bonds, and Corporate Bonds to determine why a corporation must have these types of bonds.

Trading Sites

Robinhood site is a straightforward, uncomplicated website, and no commission is involved. It provides a smartphone app and an internet program that can be used as a viable alternative for students of new stock. Inventories, electrical appliances, and alternate options are all included in this interface. The site is secure because it is a member of the securities investor protection corporation (SIPC); the funds on that platform are insured for up to $500,000 for securities and $250,000 for cash claims (Maclay, 2022). Additionally, Robinhood is a securities brokerage, and as such, the Securities and Exchange Commission regulates securities brokerages.

Another option is to use Ally invest, a practical and low-cost investment vehicle. Its pricing structure in the market is quite competitive and amounts to a total of 4.95 dollars. A fee of $4.95 is charged by the company for periods of inactivity, in addition to the price of $50 for complete transfers (Breznik, 2022). This interface does not yet provide any potential trading alternatives for use at this time. The third and final choice is Etrade, which is more affordable than Ally invest. The stock trading fees are $6.95, and the option trading fees for ETFs are $6.95 plus 75 cents (Moore, 2022). Both of these prices apply to trading. On the other hand, this interface provides a price decrease proportional to the amount of data transferred through it.

Evaluation of Amortization Schedule

The depreciation scheme is very similar to the amortization schedule, which involves a gradual decrease in an amount throughout a period. Therefore, the organization will compute the monthly payments for the loan being amortized using the schedule. Additionally, the company must adhere to a timeline while making payments for these fees because they are spread out over the loan term (Brigham & Houston, 2021). This schedule includes the costs’ specifics and the charges’ frequency. Finally, the schedule is needed to perform the calculations necessary to determine the remaining amount of interest and the total number of installments that will be applied to the loan’s principal.

Companies that Offer DIPs or DRIPs

I have researched and found three firms offering DRIPs: 3M Company, Johnson & Johnson (J&J), and Hormel Foods. Dividend reinvestment policies, also known as DRIPs, enable shareholders to reinvest cash dividends earned in a dividend-paying company by purchasing additional shares of that company’s base stock or creating new shares (Reynolds, 2022). These policies are essential because they enable purchasers to acquire shares at no cost and a lower price than the current share price.

Evaluation of U.S. Treasuries, Municipal Bonds, and Corporate Bonds

I.O.U.s issued by the United States government is known as U.S. Treasury securities. They are a form of debt instrument that is issued by the Treasury Department of the United States. Instruments that have been released include Treasury shares, bonds, and bills. Municipal bonds are debt issued to support capital expenditures by governmental entities such as cities, states, and counties (capital expenditures). Bonds issued by corporations are a type of corporate financial instrument that can be used to raise capital for ongoing operations, provide funding for mergers and acquisitions, and support expansion strategies (Reynolds, 2022). This phrase refers to a corporation when that represents many investment avenues till an organization parks its unused assets in a way that optimizes its risk and return profile and fulfills its liquidity objectives. This can happen when a company has multiple investment avenues.

The theory of assumptions demonstrates that potential interest rates, not maturity, solely drive market bond and interest rate production. Due to their security by the U.S. federal government and lack of risk of extended maturity, U.S. treasuries are included in the application of this priority approach. Since there is no chance that the city bonds would not default due to the type/class of municipal bonds, they are not subject to any risk premium upon maturity (Reynolds, 2022). Due to their greater yields than the other two financial vehicles, corporate bonds have a large maturity price premium. My willingness to take a risk is a requirement for the protection I want to maintain. If I were a risky investor, I would choose U.S. assets because there is zero risk. If I were a risk-taking, competitive investor looking to make more money, I would also like corporate lending. Generally, each organization’s portfolio should be diversified by risk and priorities.


Breznik, Z. (2022). Ally Invest | Is It Safe? Public Finance International. Web.

Brigham, E. F., & Houston, J. F. (2021). Fundamentals of Financial Management: Concise Edition (11th Ed.). Cengage.

Maclay, K. (2022). Is Robinhood Safe? Is Robinhood Legit? (Here Are The Facts). Wall Street Survivor. Web.

Moore, T. (2022). E*Trade Safety Review: How Safe is Your Information? Web.

Reynolds, B. (2022). The Best DRIP Stocks Now | 15 No-Fee Dividend Aristocrats. Sure Dividend. Web.

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