Question
An investor bought 15 Ellis Industries, Inc. long-term bonds one year ago, when they were first issued by the company. In addition, he bought 250
An investor bought 15 Ellis Industries, Inc. long-term bonds one year ago, when they were first issued by the company. In addition, he bought 250 shares of the companys common stock at the same time for $35 per share. He paid $1,000 each for the bonds, and today, the bonds are selling at $990 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 investors percentage holding period return for the one year he has held the bonds. Round your answer to the nearest whole number. %
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