Question: Part E Part E Simple and Compound Holding Period Returns (HPR) (5 Marks) The following information is for solving Questions 38 to 42 Six years
Part E
Part E Simple and Compound Holding Period Returns (HPR) (5 Marks)
The following information is for solving Questions 38 to 42
Six years ago, Quinn purchased 1000 shares of XYZ Limited at $7.50 per shares. Each quarter, XYZ shares would pay $0.25 in dividends. Today, Quinn sold these shares for $12.75 each.
Question 38 (1 point)
How much ($ amount) did Quinn make in capital gains per shares?
Question 38 options:
| $5.25 | |
| $4.50 | |
| $4.95 | |
| $6.05 | |
| None of the Above |
Question 39 (1 point)
How much (% percent return) did Quinn make in capital gains per shares?
Question 39 options:
| 78.4% | |
| 66.77% | |
| 70.00% | |
| 61.81% | |
| None of the Above |
Question 40 (1 point)
How much in dividends ($ amount) did XYZ shares pay during the 6-year period?
Question 40 options:
| $5.50 | |
| $6.00 | |
| $6.75 | |
| $5.25 | |
| None of the Above |
Question 41 (1 point)
What would be the Simple Holding Period Return (HPR) per share during this 6-year period?
Question 41 options:
| 137.27% | |
| 145.48% | |
| 150.00% | |
| 147.65% | |
| None of the Above |
Question 42 (1 point)
What would be the Compound HPR per share during this 6-year period?
Question 42 options:
| 13.15% | |
| 15.91% | |
| 16.50% | |
| 16.89% | |
| None of the Above |
Part F1
Part F Bonds (10 Marks)
Part F.1 (5 Marks)
The following information is for solving Questions 43 to 45
On January 4th, 2017, Zack purchased a corporate bond of FGH Inc. at its market price of $1025. The bond pays a 4.15 percent coupon rate, which is paid out semi-annually, based on its face value of $1,000. The bond will mature on July 5th, 2024.
Question 43 (1 point)
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What would be dollar amount of each semi-annual coupon?
Question 43 options:
| $22.50 | |
| $20.75 | |
| $23.15 | |
| $21.25 | |
| None of the Above |
Question 44 (2 points)
Saved
Based on the purchase price, what would be the current yield that Zack would be receiving on these bonds?
Question 44 options:
| 3.97% | |
| 4.19% | |
| 4.72% | |
| 4.05% | |
| None of the Above |
Question 45 (2 points)
What is the current yield to maturity that he would be receiving?
Question 45 options:
| 4.02% | |
| 3.88% | |
| 4.23% | |
| 3.92% | |
| None of the Above |
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