Brenda has money invested in Esti Transport. She owns two par value $1,000 bonds issued by Esti Transport, which currently sells
bonds at a market rate of 101.345. She also owns 116 shares of Esti Transport stock, currently selling for $15.22 per share. If, when Brenda made her initial investments, Esti Transport bonds had a market rate of 96.562 and Esti Transport stock had a share price of $13.40, which side of Brenda’s investment has gained a greater percent return, and how much greater is it? a.
The bonds showed a return that was 4.78 percentage points higher than that of the stocks.
b.
The bonds showed a return that was 4.95 percentage points higher than that of the stocks.
c.
The stocks showed a return that was 8.63 percentage points higher than that of the bonds.
d.
The stocks showed a return that was 3.58 percentage points higher than that of the bonds.
Bonds tend to offer a greater risk, while bonds tend to offer a greater return.
