One Year Ago,you Purchased a Stock at a Price of $28.50

question 36

Multiple Choice

One year ago,you purchased a stock at a price of $28.50 a share.Today,you sold the stock and realized a total return of 20.4 percent.Your capital gain was $5.20 a share.What was your dividend yield on this stock?

• A)1.25%
• B)1.85%
• C)2.15%
• D)1.75%
• E)1.35%

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Definitions:

Effective Annual Yield

This refers to the real return on an investment, taking into account the effects of compounding interest over a year.

Yield To Maturity

The total return anticipated on a bond if the bond is held until its maturity date, including all payments of interest and principal.

Semi-annually

Semi-annually refers to an event or action occurring twice a year, or every six months.

Coupon Rate

The interest rate stated on a bond when it's issued which indicates the percentage of the principal to be paid annually as interest.