1. You buy an seven-year bond that has a 5.00% current yield and a 5.00% coupon (paid annually). In one year, promised yields to maturity have risen to 6.00%. What is your holding-period return? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
2. The December 31, 2015, balance sheet of Contrail Air, Inc., showed $150,000 in the common stock account and $2,421,000 in the additional paid-in surplus account. The December 31, 2016, balance sheet showed $158,000 and $2,529,000 in the same two accounts, respectively. If the company paid out $145,500 in cash dividends during 2016, what was the cash flow to stockholders for the year?