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. Yld.
Close
Net. Chg.
7.5
128
ABC 7-15
104-
2
3
8.4
17
1
XYZ 15
100-
2
Vol
4
YZ7
What is the annual interest you would earn on each bond?