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 is the annual interest you would earn on each bond?
a.
ABC 128; XYZ 17
b.
ABC 7.5; XYZ 8.4
c.
ABC 104Three-fourths; XYZ 100One-half
d.
ABC 7One-half; XYZ 7Three-fourths