stocks and bonds
Abby Sane decided to buy corporate bonds instead of stock. She desired to have the fixed-interest payments. She purchased 9 bonds of Meg Corporation 11 3/4% at 90.00. As the stockbroker for Abby (assume you charge her a $9 commission per bond).
(a) Calculate the total cost of the purchase. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Total cost $
(b) Calculate the total annual interest to be received. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)
Total annual interest $
(c) Calculate the current yield. (Round your answer to the nearest tenth percent. Omit the "%" sign in your response.)
Current yield %