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)

Saved

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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