3 years ago you purchased a 12 year maturity, 3.4% coupon annual pay bond at a...
3 years ago you purchased a 12 year maturity, 3.4% coupon annual pay bond at a price of $93 per $100 of face value. Shortly after you purchased the bond, yields changed to 5.04%. If you sell the bond today at a price of $105 per $100 of face value, what is your annualized holding period return?
Homework Answers
Annualized holding period return is given as equal
to=((3.4%*100*3+105)/(93)-1)*1/3
=7.9570%
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