You Earned a Total Return of -5% on NoDotCom This

question 13

Essay

You earned a total return of -5% on NoDotCom this year,earned -40% last year,and earned 30% two years ago. Calculate both the three-year holding period return and the average three year return.

---

Definitions:

Call Provision

A feature of a bond or other fixed-income security that allows the issuer to repurchase and retire the debt before its maturity date.

Par Value

The face value of a bond or stock as stated by the issuer, which is not necessarily indicative of its market value.

Maturity Date

The specific date on which the principal amount of a financial instrument is to be paid back in full.

Bond Ratings

Evaluations of the credit quality and risk of default of a bond, issued by rating agencies, influencing interest rates and investor demand.