When you turned 18 years old, your grandfather gave you exactly $25,000, with the requirement that you invest it all Following these orders, you created the following portfolio at that time 15 government bonds with 20 year maturity These bonds pay a coupon payment of $17 each six months and you bought them at $814 each 200 shares of Firm ABC stock, which were currently selling at $18 50 per share The firm has a strict policy of paying a $ 25 dividend each quarter In addition, you invested the rest in Stock XYZ, which you were very confident in Thus, you also took advantage of your brokers 50 initial margin and doubled your position in this investment XYZ was selling for $30 per share at the time The call money rate was 5 1 and the spread was 2 8 XYZ pays no dividend Today, which you may assume is exactly three years later, the prices are $822 $16 80 $34 Assume you held the margin position the entire time and that your broker has a special provision that allows you to pay the entire interest payment when you sell the security What is the Holding Period Return on your portfolio

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When you turned 18 years old, your grandfather gave you exactly $25,000, with the requirement that you invest it all. Following these orders, you created

When you turned 18 years old, your grandfather gave you exactly $25,000, with the requirement that you invest it all. Following these orders, you created the following portfolio at that time.
1. 15 government bonds with 20-year maturity. These bonds pay a coupon payment of $17 each six months and you bought them at $814 each.
2. 200 shares of Firm ABC stock, which were currently selling at $18.50 per share. The firm has a strict policy of paying a $.25 dividend each quarter.

In addition, you invested the rest in Stock XYZ, which you were very confident in. Thus, you also took advantage of your brokers 50% initial margin and doubled your position in this investment. XYZ was selling for $30 per share at the time. The call money rate was 5.1% and the spread was 2.8%. XYZ pays no dividend.

Today, which you may assume is exactly three years later, the prices are:

$822
$16.80
$34

Assume you held the margin position the entire time and that your broker has a special provision that allows you to pay the entire interest payment when you sell the security. What is the Holding Period Return on your portfolio?