# accounting

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

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