5 years ago you purchased a 10 year maturity, 2.6% coupon annual pay bond at a price of $103 per $100 of face value. Shortly after you purchased the bond, yields changed to 4.65%. If you sell the bond today at a price of $91 per $100 of face value, what is your annualized holding period return?

5 years ago you purchased a 10 year maturity, 2.6% coupon annual pay bond at a price of $103 per $100 of face value. Shortly after you purchased the bond, yields changed to 4.65%. If you sell the bond today at a price of $91 per $100 of face value, what is your annualized holding period return? You Answered 0.395 Correct Answer 0.44 margin of error +/- 1% Find the total final portfolio value at the end, that comes from selling the bond and all reinvested coupons up to that point. Then find what is the annual rate of return that it would take to get there from your initial investment