Without considering taxes and transactions costs

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1. Pecos company has just issued a 10 year, 8 percent coupon rate, $1000 par bonds that pays interest semiannually. three years later, if the going rate of interest on the bond falls to 6 percent, what is the value of the bond?

2. A mutual fund had NAV per share of $16.75 on January 1, 2017. On December 31 of the same year, the fund's NAV was $17.37. Income distributions were $0.59, and the fund had capital gain distributions of $1.71.

Without considering taxes and transactions costs, what rate of return did an investor receive on the fund last year? (Round your answer to 2 decimal places.)

Rate of Return= 

Reference no: EM132019128

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