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please answer 2,4,6.. 2. Suppose the realized rate of return on government bonds exceeded the return on common stocks one year. How would you interpret
please answer 2,4,6..
2. Suppose the realized rate of return on government bonds exceeded the return on common stocks one year. How would you interpret this result? 3. What is most important to investors: the number of a company's shares they own, the price of the company's stock, or the value of their shareholdings in the company? Why? 4. Two 20-year bonds are identical in all respects except that one allows the issuer to call the bond in return for $1,000 cash at any time after five years, while the other contains no call provisions. Will the yield to maturity on the two bonds differ? If so, which will be higher? Why? 6. Information about three securities appears next. a. Assuming interest and dividends are paid annually, calculate the annual holding period return on each security. b. During the year, management of Stock 2 spent $10 million, or $0.50 a share, repurchasing 7.7 million of the company's shares. How, if at all, does this information affect calculation of the holding period return on Stock 2 Step by Step Solution
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