would happen to the volatility? QUESTIONS AND PROBLEMS 1. Calculating Returns Suppose a stock had an initial price of $84 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $93. Compute the total percentage return. 2. Calculating Yields In problem 1, what was the dividend yield? The capital gains yield? 3. Calculating Returns Rework problems 1 and 2 assuming the ending share price is $72. 4. Calculating Returns Suppose you bought a bond with a coupon rate of 5.6 percent one year ago for $985. The bond sells for $1,015 today. The bond pays annual coupons. a. Assuming a $1,000 face value, what was your total dollar return on this investment over the past year? b. What was your total nominal rate of return on this investment over the past year? c. If the inflation rate last year was 3.2 percent, what was your total real rate of return on this investment? 5. Nominal versus Real Returns What was the arithmetic average annual return on large-company stocks from 1926 through 2015: a. In nominal terms? b. In real terms? 6. Bond Returns What is the historical real return on long-term gournm