question 16 (3.3 points)\nfind the percent yield for a stock with a price of $32.18 and an annual dividend…

question 16 (3.3 points)\nfind the percent yield for a stock with a price of $32.18 and an annual dividend of $1.76.\nround your answer to 2 decimal places.\nyour answer:\nanswer units\nquestion 17 (3.3 points)\nyou invest $4,000 in a bond with a maturity date in 8 years at a fixed coupon rate of 5.33%. how much are you paid each year?
Answer
Explanation:
Step1: Recall yield formula
The formula for percent - yield of a stock is $\text{Percent Yield}=\frac{\text{Annual Dividend}}{\text{Stock Price}}\times100%$.
Step2: Substitute values
Given that the stock price is $$32.18$ and the annual dividend is $$1.76$. Substitute these values into the formula: $\text{Percent Yield}=\frac{1.76}{32.18}\times100%$.
Step3: Calculate
First, $\frac{1.76}{32.18}\approx0.0547$. Then, $0.0547\times100% = 5.47%$.
Answer:
5.47%
Explanation for Question 17:
Step1: Recall coupon - payment formula
The formula for the annual coupon payment of a bond is $\text{Annual Payment}=\text{Principal}\times\text{Coupon Rate}$.
Step2: Substitute values
The principal (amount invested) is $$4000$ and the coupon rate is $5.33%=0.0533$. Substitute these values into the formula: $\text{Annual Payment}=4000\times0.0533$.
Step3: Calculate
$4000\times0.0533 = 213.2$.
Answer for Question 17:
213.2