Edgar owns 234 shares of Cawh Consolidated Bank, which he bought for \( \$ 21.38 \) apiece. Each share pays a yearly dividend of \( \$ 3.15 \). Edgar also owns two par value \( \$ 1,000 \) bonds from Cawh Consolidated Bank. The bonds had a market value of 105.166 when he bought them, and pay \( 8.3 \% \) interest yearly. Which aspect of Edgar's investment in Cawh Consolidated Bank offers a greater percent yield, and how much greater is it? a. The stocks have a yield 6.43 percentage points greater than that of the bonds. b. The stocks have a yield 6.84 percentage points greater than that of the bonds. c. The bonds have a yield 1.05 percentage points greater than that of the stocks. d. The bonds have a yield 9.13 percentage points higher than that of the stocks.

To determine which aspect of Edgar's investment in Cawh Consolidated Bank offers a greater percent yield, we need to calculate the percent yield for both the stocks and the bonds. Given: - Edgar owns 234 shares of Cawh Consolidated Bank. - Each share pays a yearly dividend of $3.15. - Edgar also owns two par value $1,000 bonds from Cawh Consolidated Bank. - The bonds had a market value of $1,050.166 when he bought them. - The bonds pay 8.3% interest yearly. Let's calculate the percent yield for both the stocks and the bonds: 1. Percent Yield for Stocks: - Total dividend from stocks = 234 shares * $3.15 per share = $738.30 - Total investment in stocks = 234 shares * $21.38 per share = $4,999.32 - Percent yield for stocks = (Total dividend from stocks / Total investment in stocks) * 100 2. Percent Yield for Bonds: - Total interest from bonds = 2 bonds * $1,000 par value * 8.3% interest = $2,660 - Total investment in bonds = 2 bonds * $1,050.166 market value = $2,100.332 - Percent yield for bonds = (Total interest from bonds / Total investment in bonds) * 100 Now, we can calculate the percent yield for both the stocks and the bonds and compare them to determine which aspect of Edgar's investment offers a greater percent yield. Calculate the value by following steps: - step0: Calculate: \(\frac{\left(234\times 3.15\right)}{4999.32}\) - step1: Remove the parentheses: \(\frac{234\times 3.15}{4999.32}\) - step2: Multiply the numbers: \(\frac{737.1}{4999.32}\) - step3: Convert the expressions: \(\frac{\frac{7371}{10}}{\frac{124983}{25}}\) - step4: Multiply by the reciprocal: \(\frac{7371}{10}\times \frac{25}{124983}\) - step5: Reduce the numbers: \(\frac{91}{2}\times \frac{5}{1543}\) - step6: Multiply the fractions: \(\frac{91\times 5}{2\times 1543}\) - step7: Multiply: \(\frac{455}{3086}\) Calculate or simplify the expression \( (2*1000*0.083)/2100.332 \). Calculate the value by following steps: - step0: Calculate: \(\frac{\left(2\times 1000\times 0.083\right)}{2100.332}\) - step1: Remove the parentheses: \(\frac{2\times 1000\times 0.083}{2100.332}\) - step2: Multiply the terms: \(\frac{166}{2100.332}\) - step3: Convert the expressions: \(\frac{166}{\frac{525083}{250}}\) - step4: Multiply by the reciprocal: \(166\times \frac{250}{525083}\) - step5: Multiply: \(\frac{166\times 250}{525083}\) - step6: Multiply: \(\frac{41500}{525083}\) The percent yield for the stocks is approximately 14.74% and the percent yield for the bonds is approximately 7.90%. Therefore, the stocks have a yield 6.84 percentage points greater than that of the bonds. The correct answer is b. The stocks have a yield 6.84 percentage points greater than that of the bonds.