Your current CD matures in a few days. You would like to find an investment with a higher rate of return than the CD. Stocks historically have a rate of return between 10% and 12%, but you do not like the risk involved. You have been
looking at bond listings in the newspaper. A friend wants you to look at the following corporate bonds as a possible
investment.
Bond
Cur. Yid. Vol Close Net. Chg.
1
7.5
128
3
ABC 7-15
104-
2
4
8.4
17 1
XYZ 7- 15
100-
4
2
4
a
If you buy three of the ABC bonds with $10 commission for each, how much will it cost?
$3142.50
b. $1047.50
C. $3172.50
d. $1077.50