One-year holding period return sample question
Not what you're looking for? Search our solutions OR ask your own Custom question.
This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!
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 May 24, 2023, 1:34 pm ad1c9bdddf