Question: You buy 100 shares in Bondex Corporation for 25
You buy 100 shares in Bondex Corporation for $ 25 a share. Each share pays $ 1 in dividends every three months. You have a five year holding period and expect to invest all dividends received in the first two years at 6 percent, and all dividends received the next three years at 9 percent. Calculate your expected total return (as a percentage yield) if you can sell the shares at $ 30 each after five years.
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