1
QuizMultiple Choice

Stocks vs. Bonds

Question 1 • Financial Math A

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.

Answer
A
A
B
B
C
C
D
D
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Much of Ann’s investments are in Cilla Shipping…