Holding period return and confidence interval

Reference no: EM13104757

1-You are looking at a bond to add in your portfolio. The bond has a 7.2 percent coupon (paid semiannually), 10 years left to maturity, and can be purchased at par ($1,000). You expect to hold the bond for three (3) years. Assuming you can reinvest the coupon payments at 6 percent during the holding period and sell the bond at the end of the three-year holding period for $1,038.87; what is the annualized holding period yield?

2-Following are portfolio returns over the last five years. From the population of returns.

1996 18%

1997 21%

1998 24%

1999 27%

2000 â?"3%

The 68% confidence interval is

a. 5.51% to 29.29%

b. 6.77% to 28.03%

c. 6.87% to 27.93%

d. 7.12% to 27.68%

Reference no: EM13104757

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