You were planting a garden in your back yard and came upon a buried treasure. First,...

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You were planting a garden in your back yard and came upon a buried treasure. First, you open an envelope with a series of ten $5,000 savings bonds, each maturing one year after the other starting next year. There is also an envelope with a $10,000 bond maturing in fifteen years. If interest rates are 4%, what is the present value of your find? 2. You purchased 18 shares of stock five years ago for $26.25 per share. The company pays a $0.31 quarterly dividend. If the stock is now trading at $34.00 per share: a. What is your total return in $ and in %? b. What is your annualized return in %? You were planting a garden in your back yard and came upon a buried treasure. First, you open an envelope with a series of ten $5,000 savings bonds, each maturing one year after the other starting next year. There is also an envelope with a $10,000 bond maturing in fifteen years. If interest rates are 4%, what is the present value of your find? 2. You purchased 18 shares of stock five years ago for $26.25 per share. The company pays a $0.31 quarterly dividend. If the stock is now trading at $34.00 per share: a. What is your total return in $ and in %? b. What is your annualized return in %?

Answer rating: 100% (QA)

SOLUTION 1 To calculate the present value of the savings bonds we need to find the present value of each bond separately and then sum them up The form... View the full answer