Purchase Solution

Holding-Period Return for a Single Period

Not what you're looking for?

Ask Custom Question

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.

Purchase this Solution
Solution Summary

This solution is comprised of a detailed explanation to explain Holding-Period Return for a Single Period.

Solution Preview

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
Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • Future Value of Single Sum and Holding Period Return

    Holding Period Return Based on the following information calculate the holding period return: P0 = $14.00 P1 = $17.40 D1 = $ .42 1. Future value of single sum problem.

  • Investment Problem/Graph

    a. Plot the daily adjusted closing price data for each local stock on a single graph. b. Calculate the holding period return for each security over the entire year. c. Calculate a price weighted index and plot the value of this index.

  • Risk, return and holding period return

    Holding Period Return Based on the following information calculate the holding period return: P0 = $10.00 P1 = $12.00 D1 = $1.22 3.Risk & Return and the CAPM.

  • Holding Period and Stock Returns

    What is Mary's holding period return? You purchased 250 shares of General Motors stock of at a price of $89.58 two years ago. You sold all stocks today for $80.50. During this period the stock paid dividends of $5.94 per share.

  • Calculating holding period return

    298050 Foreign Exchange - Calculate holding period return An investor in England purchased a 91-day T-bill for $987.65. At that time, the exchange rate was $1.75 per pound. At maturity, the exchange rate was $1.83 per pound.

  • Expected Holding Period Return on the Stock

    What is the expected holding period return on the stock? Apply the holding period return formula. The expected holding period return is equal to the total dollar return on the stock divided by the initial investment.

  • National Telephone and Telegraph (NTT): Percentage holding

    Repaet (b) given that NTT's common stock is selling for $50 1 year later. a) Expected percentage holding period return = (P1-P0+D1)/P0 = (65-60+4)/60=15% b) Realized percentage holding period return = (P1*-P0+D1)/P0=(75-60+4)/60=31.67% P1* is the

  • Holding period return

    205683 Holding period return problem Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in 1 year, can be purchased today for $975.

  • Comparing Holding-Period Returns

    How would you interpret the meaning of the holding-period return? a. Compute the holding-period returns for Renee and Lester for periods 2 through 4. HPR for Renne =(13-11)/11= 18.18% HPR for Lester =(29-28)/28= 3.57% b.

View More Related Solutions