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Elementary,Middle School,High School,College,University,PHD
| Teaching Since: | May 2017 |
| Last Sign in: | 408 Weeks Ago |
| Questions Answered: | 66690 |
| Tutorials Posted: | 66688 |
MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Question 1: Consider the bonds of IBM: coupon 1%, term 3 years, issued in August 2010. Why do investors buy these bonds with only 1% rate of return? Give some reasons to justify your answer.Question 2: IBM stock sells at about $195 per share and pays an annual dividend of $3.40. What is its annual dividend yield? Would you rather buy the stock or the bonds of IBM? Give some reasons.Question 1: Consider the bonds of IBM: coupon 1%, term 3 years, issued in August 2010. Why do investors buy these bonds with only 1% rate of return? Give some reasons to justify your answer.
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Question 2: IBM stock sells at about $195 per share and pays an annual dividend of $3.40. What is its annual dividend yield? Would you rather buy the stock or the bonds of IBM? Give some reasons.
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