{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

10.6-10.10 Quiz

# 10.6-10.10 Quiz - The stock is earning an annual dividend...

This preview shows page 1. Sign up to view the full content.

10.6-10.10 Quiz Name:_________________________________ Money Management Date:_____________________Period:______ SHOW ALL WORK!! 1. You invest \$36,000 in a 6-year certificate of deposit that ears interest at a rate of 6.75% compounded daily. What is the annual yield on the CD? _________________________ 2. You invest \$5000 in a 2.5-year certificate of deposit that earns interest at a rate of 7.25% compounded daily. a. What is the maturity value? _________________________ b. How much interest was earned at maturity? _________________________ c. What is the annual yield? _________________________ 3. You purchased 500 shares of stock at \$ 5 8 23 a share and paid a 2.5% commission. a. What was the cost of the stock? _________________________ b. What was the total paid? _________________________ 4. You own 400 shares of stock for which you paid \$19 a share and a 3% commission.
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The stock is earning an annual dividend of \$0.75 a share. a. What would you receive in annual dividends? _________________________ b. What is the annual yield? _________________________ 5. You have 320 shares of stock. Recently a stockbroker offered you \$52.80 per share for control of the stock. You purchased the stock for \$73.20 per share. You paid a 3.2% commission when you bought the stock. You will pay a 1.5% commission when you sell the stock. What would your profit or loss be if you sold now? _________________________ 6. You are purchasing a \$9000 savings bond at 1 2 85 . It pays 6.5% annual interest. a. What is the cost of the bond? _________________________ b. What is the annual interest earned? _________________________ c. What is the annual yield? _________________________...
View Full Document

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern