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Assume you are trying to choose between two investments: 1. A $5,000 bond with 6% interest rate and repayment in 10 years. 2. $5,000 invested
Assume you are trying to choose between two investments:
1. A $5,000 bond with 6% interest rate and repayment in 10 years.
2. $5,000 invested in company stock that has traditionally paid $100 dividend annually. (The assumption is that you may hold the stock indefinitely or may sell it at any time.) Decide on one piece of additional information you would like to know that may help you decide which investment you will choose and why it would be helpful.
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