1. A stock has had returns of 17.12 percent, 12.28 percent, 6.16 percent, 27.34 percent, and −13.69 percent over the past five years, respectively.
What was the holding period return for the stock?
2. Westpac Banking has a bond issue that pays 8% interest with a $100 face value. The bond matures in 20 years. The required yield for similar risk securities is 7%.
Calculate the value of the bond.