What is the realized rate of return for those investors

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Reference no: EM132056909

1. Six years ago, Bradford Community Hospital issued 20-year municipal bonds with a 7 percent annual coupon rate. The bonds were called today for a $70 call premium--that is, bondholders received $1,070 for each bond. What is the realized rate of return for those investors who bought the bonds for $1,000 when they were issued?

2. Stock Y's expected dividend and future price are forecasted as: D1=$2, and D2=$2.5 and P2= $100 at the end of year 2. Suppose the market required rate of return for the stock is 10%. The expected return for Year 1 (that is, the period of Year 0-1) is ___________% (round your answer to two decimal places without including %)

Reference no: EM132056909

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