Question

Last year, Noah purchased 64 shares of Stock A at $51 per share, 84 shares of Stock B at $85 per share, and a four-year $3500 bond with an 11.83% coupon for $3550. Noah sold both stocks today. Stock A is worth $58 per share and Stock B has a value of $90 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

1ddddd !

Answer 2

haha :P

Answer 3

According to this page

http://www.investopedia.com/university/bonds/bonds3.asp

it says that bond yield is calculated by the formula


Yield = coupon/price


In this case, the bond has a coupon of 0.1183*3500 = 414.05

So the yield for the bond is


Yield = coupon/price = 414.05/3550 = 0.1166338028169


which is roughly 11.66%

Answer 4

what rates of returns did you get for stock A and stock B?

Answer 5

i can't remember the formula D:

Answer 6

for stock A, what is the initial price and final price?

Answer 7

The rate of return for Stock A: 13.72%
for Stock b: 5.88% i think

Answer 8

is that right?

Answer 9

very good

Answer 10

so stock A is the winner

Answer 11

so a?

Answer 12

I have one more question and i promise i won't bother you again tonight!