Course learning Outcome 5: Solve problems involving return on investments to demonstrate the
differences between percent and percent change.
2.8 Returns on Investment_Part 1
Homework: Pg 85-86 # 1, 3, 9, 11
Practice:
1. A $100 investment purchased one year ago is now worth $90. It also generated $10 of
income during the year. Determine the investment’s:
a) Income yield
b) Capital gain yield
c) Rate of total return
Course learning Outcome 5: Solve problems involving return on investments to demonstrate the
differences between percent and percent change.
2. The market value of Stephanie's bonds has declined from $1053.25 to $1021.75 per bond
during the past year. In the meantime she has received two semiannual interest payments
of $35 per bond. Calculate Stephanie's income yield, capital gain yield, and rate of total
return for the year.