Month Price per Share # of Shares Cash Portfolio Value HPR 6/1/2023 65 100 $6,500 3.08% 7/1/2023 67 100 $6,700 -1.49% 8/1/2023 66 100 $6,600 9/1/2023 64 80 $1,280 5.00% 10/1/2023 68 80 $1,280 $6,720 3.57% 11/1/2023 71 80 $1,280 $6,960 3.45% 12/1/2023 74 80 $1,280 $7,200 21. Based on the table above, suppose PM sold 20 shares of the stock A on 9/1/2023 and kept the proceeds ($1,280) in cash. What is the HPR on the portfolio from 8/1/2023 to 9/1/2023, right after the sale of stock? -> Calculate Portfolio Value and then HPR in the blue cells. A. 4.62% B. 5.18% C. -2.54% D. -3.03% E. -7.69% 22. You purchased a 5-year annual interest coupon bond one year ago. Its coupon rate was 6% and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%, your annual holding period return for that year would have been A. 5.11% B. 5.52% C. 7.57% D. 8.89%
Month Price per Share # of Shares Cash Portfolio Value HPR 6/1/2023 65 100 $6,500 3.08% 7/1/2023 67 100 $6,700 -1.49% 8/1/2023 66 100 $6,600 9/1/2023 64 80 $1,280 5.00% 10/1/2023 68 80 $1,280 $6,720 3.57% 11/1/2023 71 80 $1,280 $6,960 3.45% 12/1/2023 74 80 $1,280 $7,200 21. Based on the table above, suppose PM sold 20 shares of the stock A on 9/1/2023 and kept the proceeds ($1,280) in cash. What is the HPR on the portfolio from 8/1/2023 to 9/1/2023, right after the sale of stock? -> Calculate Portfolio Value and then HPR in the blue cells. A. 4.62% B. 5.18% C. -2.54% D. -3.03% E. -7.69% 22. You purchased a 5-year annual interest coupon bond one year ago. Its coupon rate was 6% and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%, your annual holding period return for that year would have been A. 5.11% B. 5.52% C. 7.57% D. 8.89%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
F1
Transcribed Image Text:Month
Price per Share
# of Shares
Cash
Portfolio Value
HPR
6/1/2023
65
100
$6,500
3.08%
7/1/2023
67
100
$6,700
-1.49%
8/1/2023
66
100
$6,600
9/1/2023
64
80
$1,280
5.00%
10/1/2023
68
80
$1,280
$6,720
3.57%
11/1/2023
71
80
$1,280
$6,960
3.45%
12/1/2023
74
80
$1,280
$7,200
21. Based on the table above, suppose PM sold 20 shares of the stock A on 9/1/2023 and kept the
proceeds ($1,280) in cash. What is the HPR on the portfolio from 8/1/2023 to 9/1/2023, right after
the sale of stock? -> Calculate Portfolio Value and then HPR in the blue cells.
A. 4.62%
B. 5.18%
C. -2.54%
D. -3.03%
E. -7.69%
22. You purchased a 5-year annual interest coupon bond one year ago. Its coupon rate was 6% and its
par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold
the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%,
your annual holding period return for that year would have been
A. 5.11%
B. 5.52%
C. 7.57%
D. 8.89%
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