Question: please show work with formulas. I do not have a finacial calculator either. 1. You purchase a $1000 corporate bond 5 years ago for $1,040.
1. You purchase a $1000 corporate bond 5 years ago for $1,040. The bond pays 6.25 percent annual interest. Five years later, you sell the bond for $950. Calculate the total return for the bond investment. 21.39% 2. Assume at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment's value has decreased to $7,400 by the end of the year. What is the rate of return? 6.25% 3. Two years ago, you purchased 100 shares of Coca-Cola Company. Your purchase price was $41 a share, plus a total commission of $29 to purchase the stock. During the last two years you have received the following dividend amounts: $1.03 per share for the first year, and S1:36 per share, the second year. Also assume that af the end of two years, you sold your stock for $60 a share plus a commission of $34 to sell your stock. Calculate the total return for your Coca-Cola investment when you sold the stock at the end of two years. 50.98% over two years, 25.49% annualized 4. You purchase an investment for S6,500. Over the next two years you receive 300 in income. If the value of the investment at the end of this period is 7,800, what is the percentage return on this investment? 24.62%
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