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A bond with exactly four years until maturity paying 5% p.a. coupons semi - annually and with a face value of $100 was purchased at

A bond with exactly four years until maturity paying 5% p.a. coupons semi - annually and with a face value of $100 was purchased at a yield of 5.5% p.a. The bond was sold exactly three years later for a yield of 4.5% p.a. All coupons were reinvested at 5% p.a.



Calculate the holding period yield on this bond?

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The holding period yield HPY is the total return earned by an investor from holding a bond over a particular time period It takes into account the cou... blur-text-image

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