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You like Vortex corporation (VRTX) so much that today you buy its stock at a price P0 = $200 and its 10 year bond (paying
You like Vortex corporation (VRTX) so much that today you buy its stock at a price P0 = $200 and its 10 year bond (paying a semi-annual coupon ot 5%) at a price of $800. One year later, you receive a dividend of VRTX of US$5 per share and sell both the stock for US$250 and the bond for $900. What is your HOLDING PERIOD RETURN for holding VRTX BOND and STOCK, respectively? a. 15.625% and 27.50% b. 9.375 % and 22.50% c. 13.89% and 22.00% d. 22.00% and 13.89%
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