Calculate the total dollar return and percentage return

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1. You bought one of BB Co.'s 10% coupon bonds one year ago for $1100. These bonds make annual payments, have a face value of $1000 each, and mature seven years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 8%. If the inflation rate was 3% over the past year, what would be your total real return on investment according to the Exact Fisher Formula?

2. We have the following information on share prices of papa Smirph Corp over the last five years. Calculate the total dollar return and percentage return on each share.

Year 1; Share price $20; annual dividend per share $1.00

Year 2; Share price $22; annual dividend per share $1.10

Year 3; Share price $24; annual dividend per share $1.20

Year 4; Share price $26; annual dividend per share $1.30

Year 5; Share price $28; annual dividend per share $1.40

3. Given the following share price history, what is the arithmetic average return per share? The geometric average return? Standard deviation?

Year 1; Share price $20

Year 2; Share price $22

Year 3; Share price $24

Year 4; Share price $26

Year 5; Share price $28

4. Assume that the historical average return on Canadian common stocks between 1957 and 2019 is 10.29%, with a standard deviation of 16.41%. This tells us that if we bought Canadian stocks during this period, we would expect our returns to be lower than -6.12% or higher than 26.70% in one year out of every ?

5. XYZ corp common share yields an average nominal return of 13.8%. given the following Consumer Price index history, what is the average return per share?

Year 1; CPI 100

Year 2: CPI 101

Year 3; CPI 102

Year 4; CPI 103

Year 5; CPI 104

Reference no: EM132788274

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