Holding period returnsa assume that a 10 percent-coupon, Ask an Expert

Economics

Holding Period Returns

a) Assume that a 10 percent-coupon bond ($1000 face-value) is purchased at a price of $960, held one year, and sold for $1020. What is the one-year holding period return for this coupon bond?

b) Assume that 100 shares of a stock are purchased at $30 per share and sold one year later at $26 per share. A dividend of $2 per share is paid. What is the one-year holding period return for this stock?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91234501

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