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Returns on stock and bond investments

1) A stock that does not pay a dividend of which you buy 100 shares for $23.00 per share and sell the 100 shares for $25.00 a year later. You pay the $50.00 commission when you sell the securities.

2) A 5-year bond you purchase for US$1,000 that pays a 7% coupon rate semiannually. You hold the bond until maturity.

3) The current yield on a bond that is priced at 90 has a 6% coupon.

Solution Preview

My assignment is to show/illistrate investment returns.

A stock that does not pay a dividend of which you buy 100 shares for $23.00 per share and sell the 100 shares for $25.00 a year later. You pay the $50.00 commission when you sell the securities.

# of shares= 100

Selling price per ...

Solution Summary

Returns on stock and bond investments have been calculated.

$2.19