Question

please help

Last year, Stacy purchased 81 shares of Stock A at $55 per share, 64 shares of Stock B at $57 per share, and a ten-year $3500 bond with a 6.16% coupon for $3100. Stacy sold both stocks today. Stock A is worth $61 per share and Stock B has a value of $63 per share. Assuming neither stock paid a dividend, which investment has the highest rate of return

Stock A

Stock B

Bond

Stock A and Stock B

Answer 1

@mathstudent55 @NaCl

Answer 2

Stock A:
81 shares bought last year
Bought at $55 per share. Sold at $61 per share
\( \dfrac{$61 - $55}{$55} \times 100 = 10.9\%\)

Stock B:
64 shares bought last year
Bought at $57 per share. Sold at $63 per share
\( \dfrac{$63 - $57}{$57} \times 100 = 10.5\%\)

Sorry, I don't know how bonds work.

Answer 3

what do i do from here?

Answer 4

Find out what the bond coupon percentage means. Does that mean the bond gives a 6.16% rate of return? If so, then the highest rate of return was stock A with 10.9% rate of return. Like I wrote above, I don't know how bonds work.