Suppose you invested $93 in the Ishares High Yield Fund (HYG) a month ago. It paid a

dividend of $0.53 today and then you sold it for $94. What was your dividend yield and capital

gains yield on the investment?

A) 0.54%, 1.13%

B) 0.57%, 1.08%

C) 0.57%, 1.13%

D) 1.08%, 1.18%

B) 0.57%, 1.08%

Explanation:

The computations are shown below:

Dividend yield = (Annual yield) : (market price) * 100

where,

Market price = $94 per share

Annual dividend = $0.53 per share

So, the dividend yield = ($0.53 per share : $94 per share) * 100

= 0.57%

Capital gain yield = (Market price - purchase price) : (purchase price) * 100

= ($94 - $93) : ($93) * 100

= 1.08%