Question 1
A 30-year $1,000 bond is purchased and sold prior to maturity. Compute the holding period return on this investment assuming coupons do not receive interest.
Assume the length of the investment is equivalent to the number of annual coupons received.
Purchase price:	$ 1,034.40
Selling price:	$ 1,104.81
Annual coupon:	$ 45.00
Coupons received:	5
Answer:
Question 2
Using the information from the previous problem, what is the holding period return if the coupons are reinvested based on the rate provided below?
Coupon re-investment rate:	3.20%	APR		$ 239.87
Answer: