Merideth wants advice on investing in bonds and had a question. She is considering buying a corporate bond at its current market price of $850. The bond has a coupon of 5% that pays semi- annually. The bond matures in 10 years. What is the current yield on the bond investment at the time of purchase. Determine the yield to maturity on the bond investment at time of purchase. She wants you to explain the differences between stocks and bonds (include risk, return, types of each). a. b. C.

Merideth wants advice on investing in bonds and had a question. She is considering buying a corporate bond at its current market price of $850. The bond has a coupon of 5% that pays semiannually. The bond matures in 10 years. a. What is the current yield on the bond investment at the time of purchase. b. Determine the yield to maturity on the bond investment at time of purchase. c. She wants you to explain the differences between stocks and bonds (include risk, return, types of each)