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Finance: Holding period return question

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Mrweb Mrweb01
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Finance: Holding period return question - January 29th, 2012

An investor bought 10 Ellis Industries, Inc., long-term bonds one year ago, when they were first issued by the company. In addition, he bought 200 shares of the company’s common stock at the same time for $30 per share. He paid $1000 each for the bonds, and today, the bonds are selling at $950 each (long-term interest rates have increased slightly over the past year). The bond s have a stated interest rate of 12 percent per year. The investor received an interest payment equaling $60 per bond six months ago and has just received another $60 per bond interest payment. Calculate the investor’s per centage holding period return for the one year he has held the bonds.

solution i got is 7% can an expert confirm if its correct

(9500-10000+1200)*100/10000
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Rose Marry
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Re: Finance: Holding period return question - April 19th, 2016

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Originally Posted by mrweb01 View Post
An investor bought 10 Ellis Industries, Inc., long-term bonds one year ago, when they were first issued by the company. In addition, he bought 200 shares of the company’s common stock at the same time for $30 per share. He paid $1000 each for the bonds, and today, the bonds are selling at $950 each (long-term interest rates have increased slightly over the past year). The bond s have a stated interest rate of 12 percent per year. The investor received an interest payment equaling $60 per bond six months ago and has just received another $60 per bond interest payment. Calculate the investor’s per centage holding period return for the one year he has held the bonds.

solution i got is 7% can an expert confirm if its correct

(9500-10000+1200)*100/10000
Hey friend,

Please check attachment for Study on Stock Returns and holding periods, so please download and check it.
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File Type: pdf Study on Stock Returns and holding periods.pdf (277.1 KB, 0 views)
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