ZuoTi.Pro
Question

You put up $116 at the beginning of the year for an investment. The value of...

You put up $116 at the beginning of the year for an investment. The value of the investment at the end of the year is $128 and you earn a dividend of $6.50. Your holding period return and dividend yield from this investment are ____ and _____, respectively.

A) 12.5% and 6.9%
B) 12.5% and 5.6%
C) 15.9% and 6.9%
D) 15.9% and 5.6%


Thank you

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

A) 12.5% and 6.9%

0 0
Add a comment
Answer #2

B) 12.5% and 5.6%

0 0
Add a comment
Know the answer?
Add Answer to:
You put up $116 at the beginning of the year for an investment. The value of...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You put up $20 at the beginning of the year for an investment. The value of the investment grows ...

    You put up $20 at the beginning of the year for an investment. The value of the investment grows 3% and you earn a dividend of $2.50. What is your holding period return?

  • You put up $60 at the beginning of the year for an investment. The value of...

    You put up $60 at the beginning of the year for an investment. The value of the investment grows TO $62.4 and you earn a dividend of $3.50. Your HPR was ____, capital gains yield was ____ and dividend yield was _____. A. 1.83%, 1%, 0.83% B. 5.83%, 4%, 1.83% C. 4%, 3%, 1% D. 9.83%, 4%, 5.83%

  • A newly issued bond pays its coupons once a year. Its coupon rate is 4.9%, its...

    A newly issued bond pays its coupons once a year. Its coupon rate is 4.9%, its maturity is 10 years, and its yield to maturity is 7.9%. a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.9% by the end of the year. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Holding-period return             % b. If you sell the bond after one year when...

  • 7. Put the following in order of their claim on assets of a firm, starting with...

    7. Put the following in order of their claim on assets of a firm, starting with the LAST to have a claim: A. Subordinated debentures B. Debentures (unsubordinated) C. Common Stock D. Preferred stock A) C, B, A, D B) C, D, AB CB, A, C, D D) D, C, B, A E) D, C, A, B 8. Croft Inc, bonds have a par value of $1,000. The bonds have a 4% coupon rate and will mature in 10 years....

  • Q29. You are offered an investment that requires you to put up $5.000 today exchange for...

    Q29. You are offered an investment that requires you to put up $5.000 today exchange for $12,000 15 years from now. What is the annual rate of return on this investment? A. 3.81% B. 2.40% C. 4.67% D. 6.01% E. 15.00% Q30. At the end of each month for the next ten years you will receive cash flows of $50. If the appropriate discount rate is 7.2%, compounded monthly (i.e., the APR is 7.2%), how much would you pay for...

  • Assume that you expect to hold a $20,000 investment for one year. It is forecasted to...

    Assume that you expect to hold a $20,000 investment for one year. It is forecasted to have a year end value of $21,000 with a 30% probability; a year end value of $24,000 with a 45% probability; and a year end value of $30,000 with a 25% probability. What is the standard deviation of the holding period return for this investment?

  • The YTM on a bond is the interest rate you earn on your investment if interest...

    The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy an annual coupon bond with a coupon rate of 8.1 percent for $905. The bond has 8 years to maturity and a par value of $1,000. What rate of return do you expect to earn...

  • The YTM on a bond is the interest rate you earn on your investment if interest...

    The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a. Suppose that today you buy an annual coupon bond with a coupon rate of 8.4 percent for $920. The bond has 9 years to maturity and a par value of $1,000. What rate of return do you expect to earn...

  • Assume that at the beginning of the year, you purchase an investment for $10,500 that pays...

    Assume that at the beginning of the year, you purchase an investment for $10,500 that pays $33 annual income. Also assume that the investment’s value has increased to $11,400 at the end of the year. (a) What is the rate of return for this investment? (Enter your answer as a percent rounded to 2 decimal places.) (b) Is the rate of return a positive or negative number? Positive or Negative?

  • The YTM on a bond is the interest rate you earn on your investment if interest...

    The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY). a) Suppose that today you buy a bond for $1,150. The bond has a face value of $1,000, 10 years to maturity, a 9 percent coupon rate, and the coupons are paid annually. What rate of return do you expect to...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT