Question: Help understanding what the question is asking and how to caluclate the answer. Assume that UHS will issue a 5-year bond with an annual coupon

Help understanding what the question is asking and how to caluclate the

Help understanding what the question is asking and how to caluclate the answer.

Assume that UHS will issue a 5-year bond with an annual coupon rate of 7.625%. You are considering making an $100,000 investment in UHS either through buying bonds or stocks. Comparing the bond's yield with the annual return on stock investments calculated above, you have to make a decision. Which investment option would you prefer? Explain briefly.

\begin{tabular}{lrrrrrr} \hline Year & 2019 & 2018 & 2017 & 2016 & 2015 & 2014 \\ \hline Beginning-of-Year Price (\$) & $132.53 & $114.20 & $112.63 & $112.64 & $102.53 & $82.02 \\ End-of-Year Price (\$) & $137.11 & $132.53 & $114.20 & $112.63 & $112.64 & $102.53 \\ Dividend Paid Per Share (\$) & $0.60 & $0.40 & $0.40 & $0.40 & $0.40 & $0.30 \\ \hline & & & & & & \\ \hline Dividend Yield (\%) & & & & & & \\ Capital Appreciation (\%) & 3.45% & 0.35% & 0.36% & 0.36% & 0.39% & 0.37% \\ Annual Return (\%) & 3.91% & 16.05% & 1.39% & 0.01% & 9.86% & 25.01% \\ \hline \end{tabular}

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