Problem:
Suppose it is now January 1, 2010, and you just sold an investment that you own for $12,500. You purchased the investment 4 years ago for $10,000. During the time you held the investment, it paid income equal to $1,000 each year.
Required:
Question: What is the 4-year holding period yield that you earned on your investment?
Note: Please explain comprehensively and give step by step solution.