You have a choice of investing $50,000 in a 12%, 10-year semi-annual bond, or in shares of

Question:

You have a choice of investing $50,000 in a 12%, 10-year semi-annual bond, or in shares of TIM Inc., paying a quarterly of $1.00 per share starting the quarter after you buy them. TIM shares currently sell for $25.00 per share.
Required:
Which is the better investment, assuming the current interest rate is 8% and assuming you would hold the TIM shares for 10 years, at which time they would be worth $75 each? Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...