You purchased a bond 75 days ago for $901.49. You received an interest payment of $24.00 62 days ago. Today the bond’s price is $939.14. What is the holding period return (HPR) on the bond as of today? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) HPR

You purchased a bond 75 days ago for $901.49. You received an interest payment of $24.00 62 days ago. Today the bond’s price is $939.14. What is the holding period return (HPR) on the bond as of today? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) HPR

 

Solution

Holding Period Return (HPR) = Income + (End of Period Value – Initial Value) / Initial Value

= {$ 24 + ($ 939.14 – $

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