ECON 5000 Midterm: ECON 5000 ECU finecon Midterm summer 2007 post
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Make sure to mark all of your answers on your blue bubble sheet. 4. 33: consider the information on the u. s. treasury yield curve in table 1. Suppose further that, at the end of one year: (i) the market price of the share of stock is ; and (ii) you receive a cash dividend payment. Then, the dividend income component of your one-year total rate of return on holding this share of stock is: (a) 8. 00% (b) 8. 50% (c) 8. 75% (d) 9. 00% (e) 7. 05: consider again the information in problem #8. The one-year total rate of return on holding this share of stock is: (a) -8. 75% (b) -34. 86% (c) -7. 00% (d) -43. 68% (e) -24. 38% 2: suppose a british investor is investing for one year and the annual interest rate on a one-year british government bond is 4% and at the same time it is 7% on a one-year u. s. government bond.
