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.
Bond
Cur. YId. |Vol Close
|Net. Chg.
128
ABC
15
4
84
XYZ7- 1s
100-
What is the annual interest you would earn on each bond?
a. ABC 128; XYZ 17
b. ABC7.5; XYZ 8.4
C.
3
ABC 1047: XYZ 100,
d.
ABC 7%; XYZ 7; mmmk