1) you have $15,000 to invest. you want to purchase shares of Alaska air at $42.

Question

1) you have $15,000 to invest. you want to purchase shares of Alaska air at $42.88, best buy at $51.32, and Ford motor at $8.51. How many shares of each company should you purchase so that your portfololio consists of 30 percent Alaska air, 40 percent best buy, and 30 percent Ford motor?(do not round intermediate calculations and round your final answers to the nearest whole number)
Alaska air(    ) shares
Best buy( ) shares
Ford motor( )share

2) consider the following three bonds quotes: a treasurynote quoted at 97:27 ,a corporate bond quoted at 103.25, and a municipal bond quoted at 101.90. if the treasury and corporate bonds have a par value of $1000 and the municipal bond has a par value of $5000 what is the price of these three bonds in dollars?(do not round intermediate calculations and round your final answers to 2 decimal places.)
Treasury note( )
Corporate bond ( )
Municipal bond ( )

Explanation / Answer

Investment Alaska Air :0.30 x 15000 / 42.88 = 105 shares Best Buy : 0.40 x 15000 / 51.32 = 117 shares Ford Motor : 0.3 x 15000 / 8.51 = 529 shares Three Bonds Treasury note at 97:27: (97 + 27/32)% × $1,000 = 0.9784375 × $1,000 = $978.44 Corporate bond at 103.25: 103.25% × $1,000 = 1.0325 × $1,000 = $1,032.50 Municipal bond at 101.90: 101.90% × $5,000 = 1.019 × $5,000 = $5,095.00

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