Stocks and Bonds Answers

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Your current CD matures in a few days. You would like to find an investment with a higher rate of return than the CD. Stocks historically have a rate of return between 10% and 12%, but you do not like the risk involved. You have been looking at bond listings in the newspaper. A friend wants you to look at the following corporate bonds as a possible investment. What price would you pay for each bond if you purchased one of them today? (Remember the face value is $1000.) a. ABC: $1047.50 XYZ: $1005.00 b. ABC: $1104.75 XYZ: $1100.50 c. ABC: $872 XYZ: $983 d. ABC: $750 XYZ: $840 Please select the best answer from the choices provided

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Use the following bond listing for Pacific Bell to answer the following: What is the coupon rate and maturity date for this bond? a. The coupon rate is 6; the maturity date is 2034. b. The coupon rate is ; the maturity date is 2034. c. The coupon rate is 6; the maturity date is 2099. d. The coupon rate is 6.55; the maturity date is in 5 years. Please select the best answer from the choices provided

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