Read Chapter 12 of the textbook (https://saylordotorg.github.io/text_personal-finance/index.html)
For this paper, answer the following:
- a. What are bonds? What are their features and how are they traded?
- b. What are stocks? What are their features and how are they traded?
- c. How do you calculate an annual rate of return?
- d. You buy a share of stock for $100 and it pays no dividend. A year later the market price is $105. What is the rate of return?
- e. You buy a share of stock for $100 and a year later the market price is $105 and it pays a dividend of $2. What is the return?
Be sure to use in-text citation and provide references for your sources, including textbooks.
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