Explore BrainMass

Explore BrainMass

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

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    The first investment is a bond which was purchased on May 10, 2005, 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?

    © BrainMass Inc. brainmass.com June 3, 2020, 6:23 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/what-is-the-holding-period-return-of-the-bond-the-common-stock-and-the-mutual-fund-57955

    Solution Summary

    The solution shows the formulas and calculations to arrive at the correct answer.

    $2.19

    ADVERTISEMENT