• a. What are bonds? What are their features and how are they traded?
• b. What are stocks? What are their features and how are they traded?
• c. How do you calculate an annual rate of return?
• d. You buy a share of stock for $100 and it pays no dividend. A year later the market price is $105. What is the rate of return?
• e. You buy a share of stock for $100 and a year later the market price is $105 and it pays a dividend of $2. What is the return?