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Question 1 (20 marks) Two years ago, you purchased 100 shares of Abacus Corporation. Your purchase price was $42 a share, plus a total commission

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Question 1 (20 marks) Two years ago, you purchased 100 shares of Abacus Corporation. Your purchase price was $42 a share, plus a total commission of S29 to purchase the stock. During the last two years, you have received the following dividend amounts: $1.92 per share for the first year and $1.96 per share the second year. Also, assume that at the end of two years, you sold your Abacus stock for $49 a share minus a total commission of $34 to sell the stock. Required: 1. Calculate the dividend yield for your Abacus stock at the time you purchased it. (4 marks) 2. Calculate the dividend yield for your Abacus stock at the time you sold it. (4 marks) 3. Calculate the total return for your Abacus investment when you sold the stock at the end of two years. (6 marks) 4. Calculate the approximate yield for your Abacus investment when you sold the stock at the end of two years. (6 marks) Question 2 (15 marks) Explain how cach of the following factors is a reason to invest in bonds: 1. Interest income 2. Possible increase in value 3. Repayment at maturity

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