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?
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?
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?
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?
Define the concept of risk in investment.
The chance that an investment will lose value or not meet expected returns.
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?
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?
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?
Maria owns four par value $1,000 bonds from Prince Waste Collection. The bonds pay yearly interest of 7.7%, and had a market value of 97.917 when she bought them. Maria also owns 126 shares of stock in Prince Waste Collection, each of which cost $19.33 and pays a yearly dividend of 85 cents. Which aspect of Maria’s investment in Prince Waste Collection offers a greater percent yield, and how much greater is it?
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