Calculate the investor percentage holding period return

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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 $1,000 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 bonds 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 percentage holding period return for the one year he has held the bonds.

Reference no: EM131119632

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