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P11A-A year ago, an investor bought500 shares of a mutual fund at $8.65 per share. Over the past year, the fund has paid dividends of $0.85 per share...
P11A-A year ago, an investor bought 500 shares of a mutual fund at $8.65 per share. Over the past year, the fund has paid dividends of $0.85 per share and had a capital gains distribution of
$0.73 per share.
a. Find the investor's holding period return, given that this no-load fund now has a net asset value of $9.19 .
b. Find the holding period return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of $8.78 per share.
P11A-An investor is considering the purchase of a(n) 7.500 %, 18-year corporate bond that's being priced to yield 9.500 %. She thinks that in a year, this bond will be priced in the market to yield
8.500 %. Using annual compounding, find the price of the bond today and in 1 year. Next, find the holding period return on this investment, assuming that the investor's expectations are borne out.
Assume that an investor pays $810 for a long-term bond that carries a coupon of 6 %. In 3 years, he hopes to sell the issue for $910 . If his expectations come true, what yield will this investor realize? (Use annual compounding.) What would the holding period return be if he were able to sell the bond (at $910 )
after only 9 months?
The yield will be % (Round to two decimal places.)
The holding period return will be % (Round to two decimal places.)