A stock that has had the following year-end prices and dividends:
Year Price Dividend
0 $85.18 ---
1 $90.35 $0.55
2 $88.49 $0.75
3 $92.05 $0.90
Compute (i) the holding period return over the 3-year period; and (ii) the average annual rate of return that bases on the rebalancing strategy.
b. On November 9, 2023 (Thursday) , you purchased $800,000 of the following Treasury bond:
Maturity Coupon Bid Asked
3/15/2041 4.750 98.056 98.066
Compute the (i) accrued interest and (ii) invoice (dirty or full) price of the transaction. You are REQUIRED to show (explicitly) your day counting used in your analysis!