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commission is called brokerage. Brokerage is reckoned at 1% or % on the par value.

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7. A Quotation is a published statement of the current selling price of a stock.

Quotations.
GOVERNMENT BONDS.

STOCKS.
1. U. S. 4s, registered, 1906, 1104 6. Adams Express 4s, 105.
2. U. S. 5s, coupon, 1904, 1124. 7. Penna. 4 p. C., 110.
3. Currency 6s, 1899, 102).

8. Schuylkill R. R. 5s, 1054. 4. Cherokee 4s, 1899, 101.

9. N. C. Railway 4ļs, 1044. 5. U. S. small bonds, 1054.

10. L. V. R. R. Coal 58, 94.

8. The Par Value is the Base. 9. The Rate of Premium, or Discount, is the Rate. 10. The Premium, or the Discount, is the Percentage. 11. The Quotation Value (ab. par) is the Amount. 12. The Quotation Value (bel. par) is the Difference. Hence the formulæ on page 218 become : 1. Prem. or Disc. P. V. X R.

Prem. or Disc. 2. R.

P. V.

Prem. or Disc. 3. P. V.

R.

Q. V. (ab. par) Q. V. (bel. par)
4. P. V.
1+ R.

1- R.

or

5. Q. V.

P. V.{+ Prem.

Disc.

5 shares

Income is computed on the face of a bond, at the face-rate. ($500) U. S. 4s will yield $4 per share, or $20.00 income.

MODEL SOLUTIONS.

1. Find the premium on 25 shares U. S. 4s quoted at 1103 ; also the annual income derivable therefrom.

.'. R.

1103
100 = 104

108%. Par value of 25 shares $2500. Formula: Prem. P. V. X R. $2500 x .1075 = $268.75. Income $2500 x .04 - $100.

Prem.
P. V.

500

102%,

2. The par val. of U.S. bonds = $25,000, and the premium = $500. Find the rate and the quotation. Formula : R.

so = 2%. 100% + 2% the quotation.

If these bonds were U. S. 5s, what income would they yield ?

3. I bought railroad stock quoted at 96, and the discount I obtained was in all $24. How many shares of stock did I

$ buy? 100 — 96 = 4.

:.04

4%. Formula : P. V.

$600 6 shares.

.: R.

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Disc.

24 .04

R.

If this is 6% stock, what is my yearly income therefrom?

4. I bought railway stock quoted at 102), investing $10,250. Find the number of shares I bought, and my income therefrom at 5%. Formula: P. V.

: $10,000 100 shares. 5% of $10,000 $500, income. 5. If you buy railway stock quoted at 84, and invest $3360, how many shares will you buy, and what will be your income therefrom if the stock pays 4% ?

Q.V.
1+R.

10250 1.025

=

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Formula: P. V.

Q. V.
1 --- R.

3360
.84

$4000 = 40 shares.

What will be your income at 4% ?

6. How much must I invest in 6% stock at 1021 to secure me an annual income of $300, brokerage 1 ?

Suggestions: What will be the income from 1 share? How many shares will yield $300 ? What will the shares cost you at 102}? What will the brokerage be at $1 per share? What will the total cost of the investment be?

7. What per cent. does an investment in Coney Island Brooklyn 6s offer me if the stock is quoted at 140 ?

Suggestions : $140 invested yields what income? That income is what per cent. of $140 ?

8. If I wish to obtain 7% on my investment, wnat must I pay for a 5% stock?

Suggestion : If ity of a sum $5.00, what must that sum be? Or, if 5 is the percentage and 7 is the rate, what is the base ?

PROBLEMS.

NOTE.—The numbers in the following problems refer to the Bond and Stock Quotations found on a preceding page. Brokerage is not considered unless mentioned.

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1. Find the market value of 150 shares of No. 1; also the income and the rate the investment pays.

2. Find the cost of investment in No. 10 to secure an income of $250.

3. Mr. A. owns 90 shares of No. 2. What is his income?

4. What rate do Nos. 6, 7, 8, 9, 10 severally pay on the investments ?

5. Mr. B. has $41,309 to invest. Which will secure him the larger income, No. 3 or No. 4?

6. Which will give him the higher rate on his investment?

7. How many shares of No. 3 can he buy, paying 1% brokerage ?

Suggestion : Cost of a share 1024 + . 8. If I wish to obtain 7% on my investment, what must I pay for a 6% stock?

9. How much will 55 shares C. C. C. and I. R. R. stock cost at 284, brokerage 4% ?

10. How many shares of railroad stock at 3% discount can be bought for $2139.50, brokerage %?

11. Which is more profitable, and how much, to invest $6000 in 6% stock purchased at 75%, or 5% stock purchased at 60% ?

12. What sum must I invest in Louisiana 7s at 1071 to secure an annual income of $1750 ?

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13. Which affords the greater per cent. of income, bonds bought at 125, which pay 8%, or bonds which pay 6%, bought at a discount of 10%?

14. At what price must I purchase 15% stock that it may yield the same rate of interest as 6% stock purchased at 90 ?

15. What is the cost of 125 U. S. 6s at 104, brokerage %?

16. How many shares must a broker sell to realize $10.50, commission at %?

17. B paid $10,989 for U. S. 6s at 110}, brokerage } %. What was his income?

18. What sum must be invested in U. S. 5s at 1162, brokerage 5%, to secure an annual income of $160?

19. What is the annual income from investing $4146 in 52% stock at 921, brokerage $ % ?

20. What will be the cost of 17 shares of canal stock at 937 and 143 shares gas stock, par value $10, at 1024 ?

21. A man invested $9562.50 in the stock of a city bank at 1271. If a dividend of 31% is declared, what amount of dividend would he get?

22. 6% bonds were sold at 118; the proceeds were invested in 42% bonds. If the former and the latter incomes were the same, at what quotation were the 4}% bonds bought?

23. 200 shares of stock, par value $25, and sold at 102, }% being retained for brokerage, how much is paid over ?

24. Which is the better investment, U. S. 5s at 98%, or U. S. 6s at 1087%, brokerage % in each case ?

25. Which is the more costly, and how much more, 15 shares of N. Y., N. H. & H., at 85, or 13 shares N. Y. & N. E., at 102, if the brokerage in each case is 1 % ?

26. How much money must be invested in U. S. 4)s to yield a quarterly income of $225, bonds selling at 1051?

27. A man invested some money in bonds, at par, bearing 6% interest, and received $300 semi-annually. What was the sum invested ?

28. A 5% stock is quoted at 853. A purchaser pays brokerage at 1%. What rate per cent. does he receive on his investment?

29. A lady would secure by investment an annual income of $650. How much 5% stock must she buy at par for the purpose ?

30. How much stock can be bought for $14,178 when the quoted price is 2081 ?

31. Find the quoted price of railroad stock when the cost of 250 shares, including brokerage at %, is $30,312.50.

32. What income will $10,120 yield if invested in 4% stock bought at 115?

33. If a 6% stock is quoted at 120, what rate per cent. will an investor receive on his money?

34. If I invest $1500 in 3% stock at 75, what is my income and what rate per cent. do I get on my investment ?

35. If I exchange 48 shares of a 9% stock at 176 for U. S. 4s at 116), how much must I add to my investment to secure the same income?

36. What sum of money must be invested in Louisville & Nashville Railroad certified gold 4% bonds at 81.) to produce an annual income of $320, brokerage ?

37. If $8000 5% stocks are sold at 90 and the proceeds invested in 31% stocks at 60, find the increase or decrease in income?

38. Find the price of a 33% bond that will be as profitable an investment as a 6% bond at par.

39. Mr. A. bought U.S. 6s for 108, kept them a year, and then sold them at 1183. What rate of interest did the investment pay him for that year?

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