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# Investor’s holding period

P11A-A year? ago, an investor bought 500 shares of a mutual fund at  ?\$8.65 per share. Over the past? year, the fund has paid dividends of  ?\$0.85 per share and had a capital gains distribution of ?\$0.73 per share.a. Find the? investor’s holding period? return, given that this? no-load fund now has a net asset value of  ?\$9.19 .b. Find the holding period? return, assuming all the dividends and capital gains distributions are reinvested into additional shares of the fund at an average price of  ?\$8.78  per share.P11A-An investor is considering the purchase of? a(n) 7.500 %, ?18-year corporate bond? that’s being priced to yield 9.500 %. She thinks that in a? year, this bond will be priced in the market to yield 8.500 %. Using annual? compounding, find the price of the bond today and in 1 year.? Next, find the holding period return on this? investment, assuming that the? investor’s expectations are borne out.Assume that an investor pays ?\$810 for a? long-term bond that carries a coupon of  6 ?%.  In 3? years, he hopes to sell the issue for  ?\$910 .  If his expectations come? true, what yield will this investor? realize? (Use annual? compounding.) What would the holding period return be if he were able to sell the bond? (at ?\$910 ?) after only 9? months?The yield will be % ?(Round to two decimal? places.) The holding period return will be % ?(Round to two decimal? places.)

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