Question: Problem 2-17 Margin Interest (LO3, CFA4) Suppose you take out a margin loan for $56,000. The rate you pay is an effective rate of 74


Problem 2-17 Margin Interest (LO3, CFA4) Suppose you take out a margin loan for $56,000. The rate you pay is an effective rate of 74 percent. If you repay the loan in six months, how much interest will you pay? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Answer is complete but not entirely correct. s 2.072.00 Interest Problem 2-16 Margin and Leverage (LO3, CFA4) Suppose the call money rate is 4.5 percent, and you pay a spread of 25 percent over that. You buy 700 shares of stock at $89 per share. You put up $43,610. One year later, the stock is selling for $99 per share and you close out your position What is your return assuming a dividend of $ 70 per share is paid? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Answer is complete but not entirely correct. Rate of return 22.65 % Problem 2-19 Annualized Returns (CFA1) Suppose you hold a particular investment for 4 months. You calculate that your holding period return is 9.3 percent. What is your annualized return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Annualized rolurn
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