Jenny Clayton is looking to invest in some 5-year bonds that pay annual coupons of 6.25 percent on a face value of $1,000 and are currently selling for $588.79. What is the yield to maturity on these bonds?
A. 5 percent
B. 10 percent
C. 15 percent
D. 20 percent
2. Friendly Airlines stock is currently selling for $40.00 per share. If the stock pays a dividend of $2.00 and the stock price in one year is $46.00, what is the total return on the stock?
A. 5%
B. 10%
C. 15%
D. 20%