Question
1. Assume you just paid 1,279 for a convertible bond that carries a 8.15% coupon and has 15 years to maturity. The bond can be
1. Assume you just paid 1,279 for a convertible bond that carries a 8.15% coupon and has 15 years to maturity. The bond can be converted into 24 shares of stock, which are now trading at $50 a share. Find the bond investment value of this issue, given that comparable nonconvertible bonds are currently selling to yield 12.07%.
The bond investment value of this issue is $_____
2. You've uncovered the following per-share information about a certain mutual fund:
2012 | 2013 | 2014 | |
Ending share prices: | |||
Offer | 43.84 | 62.14 | 58.59 |
NAV | 42.09 | 59.65 | 56.59 |
Dividend Income | 2.53 | 2.73 | 2.12 |
Capital Gains distribution | 1.75 | 6.26 | 4.12 |
Beginning Share Prices | |||
Offer | 53.25 | 43.84 | 62.14 |
NAV | 51.12 | 42.09 | 59.65 |
MY ANSWERS: HPR 2012: -10.83% 2013: 42.73% 2014: 10.48% AM I CORRECT?
3. Three years ago, you invested in the Future Investco Mutual Fund by purchasing 600 shares at the net asset value of $ 20.29 per share. Because you did not need the income, you elected to reinvest all dividends and capital gains distributions. Today, you sell your 650 shares in this fund for $22.35 per share. What is the compounded rate of return on this investment over the three-year period?
The compounded rate of return on this investment over the three-year period is ___%
4. You invested in the no-load OhYes Mutual Fund one year ago by purchasing 600 shares of the fund at the net asset value of $25.44 per share. The fund distributed dividends of $2.78 and capital gains of $1.54 Today, the NAV is $27.10
What was your holding period return?
Your holding period return was _____%
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