1-You are looking at a bond to add in your portfolio. The bond has a 7.2 percent coupon (paid semiannually), 10 years left to maturity, and can be purchased at par ($1,000). You expect to hold the bond for three (3) years. Assuming you can reinvest the coupon payments at 6 percent during the holding period and sell the bond at the end of the three-year holding period for $1,038.87; what is the annualized holding period yield?
2-Following are portfolio returns over the last five years. From the population of returns.
1996 18%
1997 21%
1998 24%
1999 27%
2000 â?"3%
The 68% confidence interval is
a. 5.51% to 29.29%
b. 6.77% to 28.03%
c. 6.87% to 27.93%
d. 7.12% to 27.68%