1. You buy 20 mutual fund shares at a price of $57.40 per share. You elect to reinvest distributions and, as a result, own 27.47 shares in 4 years. You sell the shares at a price of $66.30 per share, less brokerage fees of $30. Calculate your annual rate of return.
a. 12.69%
b. 14.56%
c. 12.23%
d. 11.76%
2. You just bought a 5.8% $1,000 bond for $859.50, immediately after the annual interest payment was paid to the previous owner. The bond matures in 16 years. What is the YTM?
a. 4.12%
b. 7.8%
c. .95%
d. 7.32%