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Following are data on three shares, none of the companies paid any dividends: Q = number of shares purchased in each company in July
Following are data on three shares, none of the companies paid any dividends: Q = number of shares purchased in each company in July 2023 and still held. Po = price per share paid in July 2023. P = Expected price per share on the market in June 2024. Company Name Qo - Purchased Po - July 2023 P1 - June 2024 NCI Ltd 1,000 ORC Ltd 2,000 $7.00 $8.00 $10.00 $12.00 RBL Ltd 3,000 $9.00 $8.00 Calculate the following rates of return over the year ended June, 2024 (show answers as percentages, correct to 2 decimal places): a. On a price-weighted basis of the three shares. b. On an equally weighted basis of the three shares. Amber Ltd bonds have $1,000 face value and a coupon rate of 7% pa. The annual coupons are paid on 30th July each year. The bonds will mature on 1st August 2025. Ron bought a Falcon Ltd bond on 1st August 2022 for $974.23, providing him with a yield to maturity of 8% pa. One year later, on 1st August 2023 after receiving the 2023 coupon payment, Ron sold the bond to Allison, providing her with a yield to maturity of 7.5% pa. a. What price did Allison pay for the bond? (Show answer correct to the nearer cent.) b. Calculate Ron's holding period return over the year he owned the bond? (Show answer as a percentage, correct to 2 decimal places.)
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