1. Suppose a stock had an initial price of $54 per share, paid a dividend of $1.75 per share during the year, and had an ending share price of $54. What is the holding period return?

A. -11.57% B. -14.81% C. 3.24% D. -8.23% E. 20.37%

2. Bond A Bond B

Face Value 1000 1000

Semi-annual Coupon 55 60

Years to Maturity 20 20

Price 960.26 ?

If these bonds are identical except for coupons and prices, what is the price of bond B?

A. $1000.00

B. $ 841.79

C. $ 925.31

D. $1037.86

E. $1079.63