Use the Chapter 14 powerpoint for help solving these problems. MUST show your work for full credit.

For all problems assume long-term capital gains and dividends/coupons are taxed at 15% and short term capital gains are taxed at 35%.

1. You buy a bond for $900, 1 year later you sell the bond for $1000. During the time you owned the bond you received one coupon payment of $50. Taking into account taxes, what was your percentage rate of return for this investment?

2. You purchase a home for $200,000. You live in the home and receive no rental income. Three years later you sell the house for $221,000. What was your AVERAGE ANNUAL return in percentages? (Do not need to take into account taxes)

3. You buy 100 shares of stock for $1000, less than a year later you sell the stock for $950. During the time you owned the stock you received $100 in dividends. Taking into account taxes, what was your percentage rate of return for this investment?

4. You buy into a high-dividend yielding stock and buy 400 shares for $8000. You sell 100 shares in less than a year at $2200, and sell the other 300 shares for $6150 after 1 year. During the time you owned the stock you received $400 in dividends. Taking into account taxes, what was your percentage rate of return for this investment?