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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