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What is the holding period return of the bond, the common stock and the mutual fund?

The first investment is a bond which was purchased on May 10, 2004, and the purchase price was $20,000 the bond was later sold on May 12, 2005, the sales proceeds were $19,500. Interest on the bond from May 10, 2004 to May 12, 2005, was $2,100.

The second investment was Common stock which was purchased on December 16, 2004, at a cost of $106,000 and sold on December 18, 2005, the stock was sold for $86,456 and a total of $456.00 was received in dividends.

The final investment was a mutual fund which was purchased on January 1, 2004, at a cost of $8,000 and sold one year later with the proceeds being equal to $8,100 the dividends were $654.00 and the capital gains dividends were $1,000.

What is the holding period return of the bond the common stock and the mutual fund?

Solution Preview

The first investment is a bond which was purchased on May 10, 2004, and the purchase price was $20,000 the bond was later sold on May 12, 2005, the sales proceeds were $19,500. Interest on the bond from May 10, 2004 to May 12, 2005, was $2,100.

The second investment was Common stock which was purchased ...

Solution Summary

The solution calculates the holding period return of bond, common stock and mutual fund. This solution is provided in plain text and in an attached Excel file.

$2.19