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    One-year holding period return sample question

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    A $1,000 par value, 6-year bond pays $100 of interest annually. It is priced at $1,314.53. Assume that one year from now rates have dropped by 1% (for example, from 15% to 14%). What would be an investor's one-year holding period return if she purchased the bond today and sold it one year from today?

    © BrainMass Inc. brainmass.com June 3, 2020, 5:27 pm ad1c9bdddf
    https://brainmass.com/business/bond-valuation/one-year-holding-period-return-sample-question-26731
    $2.19

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