6、A bond that pays $100 in interest each year was purchased at the beginning of the year for $1,050 and sold at the end of the year for $1,100. An investor's holding period return is:

A)   14.3%.

B)   10.0%.

C)   10.5%.

D)   15.0%.

7、An investor buys a 10 3/8s treasury note for 103 11/32 and sells it one year later for 101 13/32. What is the holding period yield?

A)   8.14%.

B)   8.22%.

C)   8.32%.

D)   8.16%.

8、An investor expects a stock currently selling for $20 per share to increase to $25 by year-end. The dividend last year was $1 but he expects this year's dividend to be $1.25. What is the expected holding period return on this stock?

A)   28.50%.

B)   24.00%.

C)   31.25%.

D)   12.25%.

答案和详解如下：

6、A bond that pays $100 in interest each year was purchased at the beginning of the year for $1,050 and sold at the end of the year for $1,100. An investor's holding period return is:

A)   14.3%.

B)   10.0%.

C)   10.5%.

D)   15.0%.

The correct answer was A)    

Input into your calculator:

N = 1, FV = 1,100, PMT = 100, PV = -1,050
CPT I / Y = 14.29

7、An investor buys a 10 3/8s treasury note for 103 11/32 and sells it one year later for 101 13/32. What is the holding period yield?

A)   8.14%.

B)   8.22%.

C)   8.32%.

D)   8.16%.

The correct answer was D)

103 11/32 = 103.344% or $1,033.44 

101 13/32  = 101.406% or $1,014.06 

A coupon of 10 3/8 = 10.375% or $103.75

The rate of return equals the [(ending cash flows - the beginning cash flows) / beginning price] x 100 =

 [(1014.06 + 103.75 – 1033.44)/1033.44] x 100 = 8.16%

8、An investor expects a stock currently selling for $20 per share to increase to $25 by year-end. The dividend last year was $1 but he expects this year's dividend to be $1.25. What is the expected holding period return on this stock?

A)   28.50%.

B)   24.00%.

C)   31.25%.

D)   12.25%.

The correct answer was C)

Return = [dividend + (end - begin)]/beginning price

R = [1.25 + (25 - 20)]/20 = 6.25/20 = .3125