1. Donna purchased 100 shares of ABC Corporation for $37 per share. The price rose to $45 over the next 12 months and Donna also received a dividend of $0.50 per share.
2. 1. What is Donnas total return on her ABC investment?

2. Susie bought a 10-year bond issued by the government with a par value of $1,000 and an interest rate of 4%.
3. 1. At maturity, Susie would be returned the principal of:
4. 2. The annual interest income Susie would receive is:

3. Suppose you have a bond that has a coupon interest rate of 9%. Its current price is $950, and it will mature in 7 years.

What is the yield to maturity?

What is its current yield?

If you bought a face value of $10,000 bonds today, what would you pay for the bonds?