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30yr, 7.5% annual coupon, selling at $980 => yield of 7.67% Holding Period: 20 years Coupon Reinvestment rate: 6% (and not 7.67%) Market yield for

30yr, 7.5% annual coupon, selling at $980 => yield of 7.67%

Holding Period: 20 years

Coupon Reinvestment rate: 6% (and not 7.67%)

Market yield for 10-yr bond in 20 years time: 8%

What is the HPR?

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