Holding Period Returns
(a) Assume that a 10 percent-coupon bond ($1000 face-value is purchased at a price of $960, held one year, and sold for $1020. What is the one-year holding period return for this coupon bond?
(b) Assume that 100 shares of a stock are purchased at $30 per share and sold one year later at $26 per share. A dividend of $2 per share is paid. What is the one-year holding period return for this stock?