4. Suppose a Midwest telephone company and telegraph MTT company bond maturing in one year can be purchased today for $975 assuming that that the bond is held until maturity the investor will receive $1000 principal plus 6 percent interest that is 0.06x $ 1000= 60 determine the percentage holding period return on this investment
5. a. national telephone and telegraph NTT company common stock currently sells for $60 per share NTT is expected to pay a $4 dividend during the coming year, and the price of the stock is expected to increase to $65 a year from now determine the expected ex-ante percentage holding period return on NTT common stock.
b. Suppose that 1 year later, NTT’s common stock is selling for $75 per
share. During the 1-year period, NTT paid a $4 common stock dividend.
Determine the realized (ex-post) percentage holding period return on
NTT common stock.
c. Repeat (b) given that NTT’s common stock is selling for $58 1 year later.
d. Repeat (b) given that NTT’s common stock is selling for $50 1 year l
4 answers