One year ago, you purchased a 10-year 8% annual coupon bond when the market interest rate on similar bonds was 6%. Today you received the first coupon payment, and the bond’s yield to maturity is 5%. If you sell the bond today, what will be your holding period return?

12.73%

Explanation:

to determine the price paid for the bond last year we must add the present value of the annuity plus the present value of the bond's face value:

present value of an annuity = payment x {1 - [1 / (1 + r)ⁿ]} / r

present value of bond's face value = future value / (1 + r)ⁿ

present value of an annuity = 80 x {1 - [1 / (1 + 6%)¹⁰]} / 6% = $588.81

present value of bond's face value = 1,000 / 1.06¹⁰ = $558.39

market price of the bond last year = $588.81 + $558.39 = $1,147.20

to determine the current value of the bond we just adjust n = 9 and r = 5%

present value of an annuity = 80 x {1 - [1 / (1 + 5%)⁹]} / 5% = $568.63

present value of bond's face value = 1,000 / 1.05⁹ = $644.61

current market price of the bond = $568.63 + $644.61 = $1,213.24

last year you invested $1,147.20 to purchase the bond and this year you received $80 (coupon) and $1,213.24 when you sold the bond. Your net profit = $1,293.24 - $1,147.20 = $146.04

holding period return = ($146.04 / $1,147.20) x 100 = 12.73%

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answer: a. the kind of population living in your neighbourhood.

the census explorer data tool by the us census bureau allows the user to zoom in on any neighbourhood within the united states and find the kind of people residing in that by race and age.  

the tool needs to needs to be used twice – once in order to find what type of people reside in a neighbourhood, and then to see the age groups of the people in the same neighbourhood.