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1) Suppose the stock you are analyzing is today priced at $47. If the stock were to increase to $50 two years from now and

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1) Suppose the stock you are analyzing is today priced at $47. If the stock were to increase to $50 two years from now and it pays no dividends, what is the holding period return? a. 6.383% b. 12.766% c. 9.479% d. 10.359% 2) Suppose you are evaluating a bond with the following characteristics: Price S1035 Face Value $1000 Coupon Rate 8% Coupon Frequency Semi-Annual Maturity 5 Years What is the bond's Yield to Maturity? a. 7.155% b. 6.461% c. 8.162% d. 8.000% 3) What is the EAR under continuous compounding if given an APR of 6%? a. 7.284% b. 6.955% c. 6.184% d. None of the above

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