Question
1a. Suppose you owned stock in a company for the last three years. You originally bought the stock three years ago for $30 and just
1a. Suppose you owned stock in a company for the last three years. You originally bought the stock three years ago for $30 and just sold it for $56. The stock paid an annual dividend of $1.35 on the last day of each of the past three years. What is your realized return on this investment?
1b. A $1,000 par value bond with Seven years left to maturity pays an interest payment semiannually with a 7 percent coupon rate and is priced to have a 6.2 percent yield to maturity. If interest rates surprisingly increase by 0.5 percent, by how much would the bonds price change?(Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
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