Reference no: EM132066536

After researching Best Buy common stock, Sally Jackson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 350 shares of Best Buy. At the time of the sale, a share of common stock had a value of $54. Three months later, Best Buy is selling for $57 a share, and Sally instructs her broker to cover her short transaction. Total commissions to buy and sell the stock were $79. What is her profit for this short transaction? 7. Assume that one year ago, you bought 280 shares of a mutual fund for $25 per share and that you received an income dividend of $0.15 cents per share and a capital gain distribution of $0.36 cents per share during the past 12 months. Also assume the market value of the fund is now $22 a share. Calculate the total return for this investment if you were to sell it now. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.) 8. Sandra Waterman purchased a 52-week, $1,600 T-bill issued by the U.S. Treasury. The purchase price was $1,597. (a) What is the amount of the discount? (b) What is the amount Ms. Waterman will receive when the T-bill matures? (c) What is the current yield for the 52-week T-bill at the time of purchase? (Enter your answer as a percent rounded to 2 decimal places.) 9. James McCulloch purchased a 20-year U.S. Treasury bond four years ago and paid the face value of $4,500. The bond paid 3.300 percent annual interest. Four years later he sold the bond for $4,540. (a) What is the annual interest amount for the bond? (Round your answer to 2 decimal places.) (b) What is the total interest Mr. McCulloch earned during the four-year period? (Round your answer to the nearest whole number.) (c) What is the total return for Mr. McCulloch's bond investment? (Round your answer to the nearest whole number.)