Reference no: EM132546783

1. If a bond was quoted in the newspaper at 71.6, the price in dollars was?

• $1,000.00
• $1,153.50
• $576.75
• $753.50

2. Assume you are in the 33 percent tax bracket and purchase a municipal bond with a yield of 5.00 percent. Use the formula presented in chapter 11 of your textbook to calculate the taxable equivalent yield for this investment. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

3. Five years ago, you purchased fourteen corporate bonds that each pay 4.80 percent annual interest. Each bond has a face value of $1,000. How much interest do you earn on the fourteen bonds each year?

4. Jamie and Peter Dawson own 220 shares of Duke Energy common stock. Duke Energy's quarterly dividend is $0.80 per share. What is the amount of the dividend check the Dawson couple will receive for this quarter?

5. Sarah and James Hernandez purchased 160 shares of Macy's stock at $33 a share. One year later, they sold the stock for $45.00 a share. They paid a broker a commision of $10 when they purchased the stock and a commision of $14 when they sold the stock. During the 12-month period the couple owned the stock, Macy's paid dividends that totaled $1.57 a share. Calculate the Hernandez total return for this investment. (Do not round intermediate calculations. Round your answer to 2 decimal places.)