Question
a. You purchased a zero coupon bond one year ago for $411.22. The market interest rate is now 6 percent (please keep in mind that
a. You purchased a zero coupon bond one year ago for $411.22. The market interest rate is now 6 percent (please keep in mind that this number is a compounded semi-annually by convention). If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year? b. You bought a share of 4 percent preferred stock for $91.80 last year. The market price for your stock is now $93.01. What is your total return for last year? c. A stock was priced at $120.71 at the beginning of the year and $92.11 at the end of the year. The company also paid a dividend of $0.50 per share. What was the total return for the year?
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