Assume Carter and his wife buy a vacant parcel of waterfront property at the end of 2011 for $400,000 and expect to be able to sell the property (net of expenses) at the end of 2012 for $415,000. No rental income is generated on the property. Determine the nominal total return and continuously compounded total return, respectively, on this investment over for the holding period.

3.75% and 1.04%

6.25% and 1.04%

3.75% and 3.68%

6.25% and 6.06%