Holding period return Exactly six years ago, you started your own investment portfolio. To do so, you
Question:
Holding period return Exactly six years ago, you started your own investment portfolio. To do so, you bought 1,000 shares of common stock A, each selling at $12.97 per share. Common stock A paid a dividend of $.12 per quarter for the first year, $.15/quarter for the next year, $.28/quarter for the next year, and then $.30/quarter for each of the remaining years. You also bought 250 shares of preferred stock B, which is selling at $7.70 per share. The preferred stock is a 4%, $50 preferred issuance. You also bought five treasury bills C, each selling at $565.97 and ten coupon bonds D selling at $875.62 per bond. The coupon bonds have a 5.4% coupon rate, a 6.3% YTM, and 15 years left until maturity.
Today, the prices are $10.86, $8.01, $754.86, and $866.97 for assets A, B, C, and D, respectively. What is the holding period return on your portfolio?
Step by Step Answer:
Applied Corporate Finance Making Value Enhancing Decisions In The Real World
ISBN: 9783030816308
2nd Edition
Authors: Mark K. Pyles