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12 February, 07:19

Last year, William purchased 85 shares of Stock A at $80 per share, 40 shares of Stock B at $225 per share, and a $1500 bond with a 5.75% coupon for $1525. William sold both stocks today. Stock A is worth $86 per share and Stock B has a value of $240. Assuming neither stock paid a dividend, which investment has the lowest rate of return?

A: Stock A

B: Stock B

C: Bound

D: Stock A And Stock B

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Answers (2)
  1. 12 February, 08:48
    0
    Stocks and bonds

    1) Amanda purchased a 30-year $10,000 bond at par value with a 4% coupon. What is the total value of the coupons?

    d) $12,000

    2) What is the rate of return on a $10,000 bond purchased at $8750 with a 10% coupon?

    c) 11.43%

    3) Last year, William purchased 85 shares of Stock A at $80 per share, 40 shares of Stock B at $225 per share, and a $1500 bond with a 5.75% coupon for $1525. William sold both stocks today. Stock A is worth $86 per share and Stock B has a value of $240. Assuming neither stock paid a dividend, which investment has the lowest rate of return?

    c) Bond

    4) List the following stocks and bonds in order from highest default risk to lowest default risk.

    A municipal bond in a city with a population of 100,000

    A common stock in a 77-year old firm with good business practices

    A preferred stock in a company under federal investigation

    c) Preferred stock, common stock, municipal bond.

    5) Clarissa's income put her in the bottom tax bracket (10%) last year. During the same year, she earned $250 in dividends and $75 in coupons on a government bond. In February, she purchased a common stock for $425. She sold the same stock eight months later for $600. what is the total Clarissa will pay in taxes on last year's investments?

    b) $25.00
  2. 12 February, 11:12
    0
    It would be (D: Stock A And Stock B)
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