Holding-Period Return for a Single Period
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Can anyone explain Holding-Period Return for a Single Period?
HPR = [I + (P0 - P1)] / P0
Given:
CR = 8%
YTM = 8%
N = 10 years
Compounding = Semiannual
P0 = $1000
In six months the rate falls to 7% what is the HPR?
I am completely baffled by this one the answer is 10.85% Semiannual. I can not get this to work.
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Can anyone explain Holding-Period Return for a Single Period?
HPR = [I + (P1 - P0)] / P0 "The correct formula"
Given:
CR = 8%
YTM = 8%
N = 10 years
Compounding = Semiannual
P0 = $1000
In six months the rate falls to 7% what is the HPR?
I am ...
Purchase this Solution
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