5. The market values of bonds are quoted in the same way as the market values of shares of stock; e.g. "U. S. 5's, 110," means that one dollar of United States bonds bearing 5% interest is worth $1.10.

6. The premium, discount, income, and brokerage on bonds is computed on the par value. In this respect, do bonds resemble, or differ from capital stock?

499. Oral

1. What is the par value of ten 500-dollar bonds?

2. When selling at 110, what is their market value?

3. What must be paid for five 100-dollar bonds when they are quoted at 120?

4. When bonds are quoted at 80, how many dollars of bonds can be bought for $400 ?

5. What is the annual interest on a four per cent $500dollar bond? On a 41% 1000-dollar bond?

6. How many dollars of 6% bonds must I own in order to receive an annual income of $1200 from them? A semi-annual income of $1200 ?

7. How many 5% 100-dollar bonds must I own in order to receive from them an annual income of $750? To receive an annual income of $1000? To receive a semi-annual income of $1000?

8. A farmer invested $9000 in railroad bonds at 90. How many dollars of bonds did he buy? How many bonds did he obtain if they were 500-dollar bonds?

9. A speculator invested $1050 in many dollars of bonds did he buy? interest on them?

6% bonds at 105. How What was the annual

10. A broker bought for his principal $10,000 of railroad bonds at 89, charging% brokerage. What did the bonds cost the principal? What did the broker receive for his

services?

11. A broker sold $10,000 of bonds for his principal at 897, charging 1% brokerage. How much did the principal receive? How much did the broker receive?

12. A $500 bond was sold for $400. The selling price was what per cent of the par value? The bond was sold at what per cent below par? If this was the regular market value, how were that kind of bonds quoted? If it was a 5% bond, what was the annual interest on the bond?

13. A man invested $7800 in bonds at 773 %, paying % brokerage. How many dollars of bonds did he buy? If they were 4% bonds, what was the annual interest?

14. When the market value of a $1000 bond is $1030, how are the bonds quoted?

15. If a man invests $1200 in 7% bonds quoted at 120, how much money does he receive from them annually?

16. How many 1000-dollar 3% bonds must a man buy to secure an annual interest of $600? What will they cost, if bought at 90?

500. Written

1. a. What is the market value of $40,000 of U. S. 2% registered bonds due in 1930, when quoted at 104?

b. What is the annual interest?

c. How many dollars of these bonds will $20,800 buy?

d. What is the annual interest on them?

e. What quantity of these bonds will $35,360 buy?

f. What will be the yearly interest on them?.

2. At one time, U. S. 4% coupon bonds were quoted at 120. a. What was the cost of $21,500 of those bonds?

b. What interest did the government pay annually on them? c. How many dollars of bonds could be bought for $84,600? d. What interest did the government pay annually on those bonds?

3. Milwaukee Electric Railway 41% bonds once sold at 90. a. How many dollars of the bonds would $81,000 buy? b. What must be paid for $19,500 of these bonds?

c. What interest is the railroad required to pay annually on that amount of bonds?

d. What amount of the bonds would $10,800 buy?

e. What interest would the railroad be required to pay annually on that amount of bonds?

f. A man invested $63,000 in these bonds. What interest did the railroad pay him annually?

g. How much must be invested in these bonds to secure the payment of $2700 yearly interest from the railroad company?

4. A man bought $198,000 of Atchison, Topeka, and Santa Fé R.R. 4% bonds at 96%, paying 1% brokerage.

a. What did he pay for the bonds?

b. He sold them at 1001, paying 3% brokerage. How much did he receive for them?

c. How much did he gain by the speculation?

d. With the proceeds of the sale, he bought Allegheny and Western first mortgage 4% bonds at 987, paying 1% brokerWhat amount of bonds did he buy?

age.

5. A man sold 400 shares of stock, yielding 21% semiannual dividends, at 102, and with the proceeds bought Toledo, St. Louis, and Western R.R. 4% bonds at 797, paying

% brokerage for each transaction. What amount of bonds did he buy?

6. On the 18th of February, 1908, the 4% bonds of the Adams Express Company were quoted at 88.

four problems from the data here given.

Make and solve

7. Metropolitan Street Railway 5% bonds once sold at 1031. Make and solve four problems using this fact.

RATIO

501. The ratio of two numbers is the quotient obtained by dividing one number by the other, e.g. :

a. The ratio of 6 to 3 is 6 ÷ 3, or 2. b. The ratio of 3 to 6 is 3÷6, or 3.

c. The ratio of 11 to 7 is 11+7, or 14.

d. The ratio of 7 to 11 is 7 ÷ 11, or

By it

503. Division is one method of comparing numbers. we determine, not how much greater one number is than another, but how many times as great; thus, 15 is three times as great as 5, and 5 is as great as 15.

504. The numbers compared in determining the ratio of one number to another are the terms of the ratio; the first term of a ratio is its antecedent; the second term of a ratio is its consequent ;

the sign (:) of, ratio is the sign of division with the horizontal line omitted; e.g. the ratio of 14 to 2 is expressed, 14: 2 = 7; 14 is the antecedent, 2 is the consequent, and 7 is the ratio.

505. The antecedent and consequent taken together are called a couplet.

506. The inverse ratio of two numbers is the quotient of the second divided by the first; e.g. the inverse ratio of 18 to 3 is 3÷18 or 1. The quotient of the first divided by the second

is called the direct ratio.

507. Oral

Name the antecedent and the consequent and give the ratio of each of the following couplets:

5.

81: 9 6. 13: 4

7. 5:29
8. 3:

1. 18: 6 3. 16: 64 9. 7: 1/ 2. 24: 3 4. 49: 7 10. : 4 508. Since, in a direct ratio, the antecedent is always a dividend, the consequent a divisor, and the ratio a quotient, the antecedent must be the product of the consequent and ratio. Therefore, the relations of product and factors will enable us to determine any one of these numbers when the other two are given.

509. Oral

Find the value of x in each of the following ratios:

13. The ratio of the length to the breadth of a table is 3. If

the length is 12 feet, what is the breadth? Illustrate by a drawing.