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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.)

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