Finance: Holding period return question

[mrweb01]

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

 

[rosemarry2]

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.