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    Holding period return

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    Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in 1 year, can be purchased today for $975. Assuming that the bond is held until maturity, the investor will receive $1,000 (principal) plus 6 percent interest (that is, 0.06 3 $1,000 5 $60).

    Determine the percentage holding period return on this investment

    © BrainMass Inc. brainmass.com March 4, 2021, 8:57 pm ad1c9bdddf
    https://brainmass.com/business/payback-period-and-discounted-payback-period/holding-period-return-problem-205683

    Solution Summary

    The solution explains how to determine the bond holding period return.

    $2.49

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