Much of Ann’s investments are in Cilla Shipping. Ten years ago, Ann bought seven bonds issued by Cilla Shipping, each with a par value of $500. The bonds had a market rate of 95.626. Ann also bought 125 shares of Cilla Shipping stock, which at the time sold for $28.00 per share. Today, Cilla Shipping bonds have a market rate of 106.384, and Cilla Shipping stock sells for $30.65 per share. Which of Ann’s investments has increased in value more, and by how much?a.The value of Ann’s bonds has increased by $45.28 more than the value of her stocks.b.The value of Ann’s bonds has increased by $22.64 more than the value of her stocks.c.The value of Ann’s stocks has increased by $107.81 more than the value of her bonds.d.The value of Ann’s stocks has increased by $8.51 more than the value of her bonds.
Stock in Ombor Medical Supplies earns a return of 5.3% annually, while bonds issued by Ombor Medical Supplies earns a return of 4.1% annually. If you invest a total of $2,400 in Ombor Medical Supplies, $1,400 of which is in bonds and $1,000 of which is in stocks, which side of the investment will show a greater return after six years, and how much greater will it be?a.The stocks will earn $55.60 more than the bonds.b.The stocks will earn $118.60 more than the bonds.c.The bonds will earn $82.00 more than the stocks.d.The bonds will earn $26.40 more than the stocks.
Josef owns four par value $1,000 bonds from Dowc Beverage Co. Each bond has a market value of 104.561 and gives 9.2% interest. Josef also owns 170 shares of stock in Dowc Beverage Co. Stock in Dowc Beverage Co. has a share price of 26.25 and pays a dividend of $2.38. If the broker Josef employed to purchase these stocks and bonds charges a commission of $72 for each ten shares of stock bought or sold and a commission of 4% of the market value of each bond bought or sold, which aspect of Josef’s investment in Dowc Beverage Co. has a greater percent yield, and how much greater is it? a. The stocks have a yield 2.15 percentage points higher than that of the bonds. b. The stocks have a yield 0.27 percentage points higher than that of the bonds. c. The bonds have a yield 1.35 percentage points higher than that of the stocks. d. The bonds have a yield 2.08 percentage points higher than that of the stocks. Please select the best answer from the choices provided
Chester has a par value $500 bond issued by Harris County. The bond pays 6.2% yearly interest, and has a current market rate of 98.626. If Harris County bonds had a market rate of 101.760 instead of 98.626, what would be the current yield on Chester’s bond? a. 0.061 b. 0.062 c. 0.063 d. 0.031 Please select the best answer from the choices provided
Stocks tend to make better short-term investments, while bonds tend to make better long-term investments.
Miranda purchased 425 shares of Dagofi Radar stock at $14.15 apiece. She earns $374.00 in dividends every year. What is the yield on Miranda’s Dagofi Radar stock?a.0.0622b.6.22c.26.4d.0.0264
Define the concept of risk in investment.
The chance that an investment will lose value or not meet expected returns.
Eight years ago, Ian invested in Rayje Clothiers. He purchased five par value $1,000 bonds issued by Rayje Clothiers at a market value of 94.956, each of which yields interest of 7.5%. Ian also bought 250 shares of Rayje Clothiers stock at $17.22 apiece. Bonds from Rayje Clothiers yield interest of 7.5%, and stock from Rayje Clothiers yields dividends of $1.09 yearly. Today, Rayje Clothiers bonds have a market value of 108.224 and Rayje Clothiers stock sells for $19.96 per share. If Ian liquidates his portfolio and sells off all of his investments, which aspect of his investment in Rayje Clothiers will yield the greater total profit, and how much greater will it be?a.The bonds yielded $820.00 more in profits than the stocks.b.The bonds yielded $798.40 more in profits than the stocks.c.The stocks yielded $21.60 more in profits than the bonds.d.The stocks yielded $242.20 more in profits than the bonds.
Say that your broker charges you a commission of $1,340.75 for your purchase of 258 shares of stock in Ergar Appliances. If Ergar Appliances has a list price of $73.96 and pays a dividend of $11.45 per share, what is your annual yield?a.0.1548b.0.1446c.0.1924d.0.0691
Did you find these answers helpful?
Annuities
Buying Bonds
Other Costs of Buying a Home