1. Fred salmon purchased six 1,000 bonds at 92. The bonds pay 6.5%
What was the cost of the bonds?
What was the total annual interest?
What is the yield (to the nearest percent)?
2. John Tucker is interested in purchasing stock. He wants to determine the costs.
Number of shares: a100 XYZ Price per share: a16.25
b50 ABC b29.32
c400 QQ c11.77
Total: a1,625
b2,466
c4,708
what is the commission @ 6% of Total, for a.
Then what is it for b, then c?
Then what is the total cost for a, then do b, and then c.
3.
Chucks computer corporation has 10,000 shares of stock outstanding.
If it declares dividends of 12,000, what is the dividend per share of stock?
What would be your share of the declared dividend if your owned 50 shares?
1. The cost of the bonds was $6,000. The total annual interest was $390. The yield was 6.5%.
2. The commission for a is $97.50, for b is $148.98, and for c is $281.50. The total cost for a is $1,722.50, for b is $2,614.98, and for c is $4,989.50.
3. The dividend per share of stock is $1.20. Your share of the declared dividend if you owned 50 shares would be $60.
1. To find the cost of the bonds:
Cost of the bonds = Number of bonds * Price per bond
= 6 * 1,000 * 0.92
= $5,520
To find the total annual interest:
Total annual interest = Cost of the bonds * Interest rate
= $5,520 * 0.065
= $358.80
To find the yield (to the nearest percent):
Yield = (Total annual interest / Cost of the bonds) * 100
= ($358.80 / $5,520) * 100
= 6.50% (rounded to nearest percent)
2. To find the commission for stock a:
Commission = Total cost of stock a * Commission rate
= $1,625 * 0.06
= $97.50
To find the commission for stock b:
Commission = Total cost of stock b * Commission rate
= $2,466 * 0.06
= $147.96
To find the commission for stock c:
Commission = Total cost of stock c * Commission rate
= $4,708 * 0.06
= $282.48
To find the total cost for stock a:
Total cost = Total cost of stock a + Commission
= $1,625 + $97.50
= $1,722.50
To find the total cost for stock b:
Total cost = Total cost of stock b + Commission
= $2,466 + $147.96
= $2,613.96
To find the total cost for stock c:
Total cost = Total cost of stock c + Commission
= $4,708 + $282.48
= $4,990.48
3. To find the dividend per share of stock:
Dividend per share = Total dividends / Number of shares
= $12,000 / 10,000
= $1.20
To find your share of the declared dividend if you own 50 shares:
Your dividend = Dividend per share * Number of shares you own
= $1.20 * 50
= $60
1. To find the cost of the bonds, multiply the number of bonds purchased by the purchase price per bond:
Cost of bonds = 6 * 1,000 * 0.92 (since 92% is the same as 0.92) = $5,520
To find the total annual interest, multiply the cost of the bonds by the interest rate:
Total annual interest = $5,520 * 0.065 (since 6.5% is the same as 0.065) = $358.80
To find the yield, divide the total annual interest by the cost of the bonds and multiply by 100 to get a percentage:
Yield = ($358.80 / $5,520) * 100 ≈ 6.5%
2. To find the commission for each stock, multiply the total cost of each stock by the commission rate (6%):
Commission for a = $1,625 * 0.06 = $97.50
Commission for b = $2,466 * 0.06 = $147.96
Commission for c = $4,708 * 0.06 = $282.48
To find the total cost for each stock, add the total cost with the commission:
Total cost for a = $1,625 + $97.50 = $1,722.50
Total cost for b = $2,466 + $147.96 = $2,613.96
Total cost for c = $4,708 + $282.48 = $4,990.48
3. To find the dividend per share of stock, divide the total dividend by the number of shares outstanding:
Dividend per share of stock = $12,000 / 10,000 = $1.20
To find your share of the declared dividend if you own 50 shares, multiply the dividend per share by the number of shares you own:
Your share of the declared dividend = $1.20 * 50 = $60