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Oracle stock has the following probability distribution of expected prices one year from now. State Probability Price 1 25% $60 2 45% $70 3 30%
Oracle stock has the following probability distribution of expected prices one year from now. State Probability Price 1 25% $60 2 45% $70 3 30% $83 If you buy Oracle today for $68, and it will pay a dividend during the year of $5 per share, what is your expected holding-period return on Toyota? a. 6.24% b.5.00% c. 9.15% d. 12.35% QUESTION 21 "Suppose you purchased an 8-year 6% coupon bond with par $1,000 today. The yield to maturity is 10% today. If the yield falls to 9.4% after one year, what's your holding- period return for this year?" a. 5.66% b. 13.29% c. 11.18% d. 3.56% QUESTION 22 "A semi-annual 12% coupon bond with par $1,000 is callable in five years. The call price is $1240. If the bond is selling today for $1,100, what is the yield to call?" a. 6.40%
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