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2a. On January 20, 2016, an investor purchased 300 shares of LoJack stock for $9.00/sh and paid a 1% broker commission. A year letter, she

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2a. On January 20, 2016, an investor purchased 300 shares of LoJack stock for $9.00/sh and paid a 1% broker commission. A year letter, she sold the stock for $12.00. The company paid a S0.10 dividend. What was the investor's return on investment (ROI)? 2b. The same investor wondered what would her return would have been if she used margin. At the time, the margin call was 40%. Calculate her ROI had she used margin. 3. A $1,000.00 bond with a 7.5% coupon rate is purchased and will mature in 12 years. If current interest rates are 8%, what should be the price of the bond? If after six years interest rates are still 896, what should be the price of the bond? Change the current interest rate in (A) and (B) to 6% and recalculate your answers. A. B. C. 4. (Extra Credit). Tracking a Stock. Review the following pages (221 to 227 in the FNB 100-Cornet text). Using Yahoo Finance (http://finance,yahoo.com) work through the illustration on the Microsoft (msft) historical return. After doing this, do the same for International Business Mach (IBM). Print out and hand in your results. tilibra

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