1.Lonny Jhonny inheirited $10,000 from his aunt, and wants to invest the money

He wants to invest half of it in a CD that pays 4.5% annual interest compounded monthly for 4 years.

a.How much interest would he make?

b.What is the effective annual yield?

2.A. If he bought 100 shares of PNC with a stock price of $24.95 with the remaining inheritance, how much money will he have left? Brokerage fees are 5.95 plus 0.5% of the transaction amount.

b.If PNC's stock splits 3:2 and then pays a $1.28 dividend, how much does Mr. Jhonny receive?

3.Amir thinks the PNC stock is going to rise to $29.00 a share so he buys a call option that's selling for $0.11 per share with a strike price of $27.50

a.How many 100-share contracts can be bought with the leftover cash and dividend payment? No brokerage fees.

b.If the price does go to $28.00 how much profit will Amir make? Calculate yield.

4.PNC just issued bonds to raise capital for equipment. The bonds pay a 4% coupon annually and sell for 94 . If Amir sold his 150 shares and also used the profit from his call option how many $1000 bonds can he buy? Make sure to deduct broker fees from stock sale.

a.How much will his annual dividend be if he bought that many bonds?

b.Calculate annual yield

5.PNC spends money in Canada, so they buy Canadian dollars on the market. The price quoted below what is the spread?

CAN/USD0.7500/05

How many Canadian dollars could Lonny have purchased with his original $10,000 USD on the spot market?