1. Suppose you bought a 12 percent coupon bond one year ago for $870. The bond sells for $945 today. Assuming a face value of $1,000, what is your percentage return over the past year?
A) 24.43%
B) 26.67%
C) None of these are correct?
D) 18.16%
E) 22.41%
2. A stock had returns of 12 percent, 11 percent, 16 percent, 8 percent, 15 percent, and 8 percent over the last six years. What is the geometric mean return for this stock?
A) 11.42%
B) 11.62%
C) 11.72%
D) None of these are correct.
E) 11.91%