Using the following information, please compute the investment performance and end of period asset value for the following realistic scenario.

A $100,000 investment in a 15 year, AA-rated corporate bond with a 5 percent coupon. Please calculate the annual interest income that you would receive each year, along with the value that you will receive when your bond matures.

The 15-year average return for the S&P 500 from January 1973 to December 2016 (29 separate 15 year periods) was as high as a 20% average annual return and as low as a 3.7% average annual return. Additionally, the average dividend yield for the S&P is 4.11% and the average annual dividend growth rate is 6.11%.

Using this information, please compare the investment in the 5% 15 year corporate bond with a $100,000 investment in a stock with a 3.7% dividend yield (10 percent less than the S&P 500 average yield) and a 3% dividend growth rate (50 percent of the S&P 500 dividend growth rate).

The annual investment returns are as follows:

Year 1 (13.40%) Year 2 (23.37%) Year 3 26.38% Year 4 8.99%

Year 5 3.00% Year 6 13.62% Year 7 3.53% Year 8 (38.49%)

Year 9 23.45% Year 10 12.78% Year 11 0.00 Year 12 13.41%

Year 13 29.60% Year 14 11.39% Year 15 (0.73%)