You invest $1,000 in Xenon Corporation stock (10 shares at $100 per share) and another $1,000 in a Xenon Corporation bond (1 bond with a $1,000 face value) that pays 8% interest annually. Xenon has a phenomenal year and distributes $5 per share to its shareholders. The stock's value also increases to $115 per share. The bond's price stays at $1,000.
What is your return on investment for each of these for the year?
Return % = (Current income + Ending price - Beginning price) / Beginning price