Question

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. A 5-column table with 2 rows. Column 1 is labeled Bond with entries A B C 7 and one-half 15, X Y Z 7 and three-fourths 15. Column 2 is labeled current yield with entries 7.5, 8.4. Column 3 is labeled volume with entries 128, 17. Column 4 is labeled Close with entries 104 and three-fourths, 100 and one-half. Column 5 is labeled net change with entries blank, + one-fourth. If you buy five of the XYZ bonds with $8 commission for each, how much will it cost? a. $5025 b. $5065 c. $1005 d. $1045

Answer 1

Answer:B

Explanation:

Answer 2

Answer is B. 5065

Explanation:

Edge says so

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 was the price of the XYZ bond on the previous day?

Edge says its C. 100 1/4

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 was the price of the ABC bond on the previous day?

Edge says its D. 104 3/4