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Posted on Jul 27, 2024

Ten years ago, you bought a 3 0 - year bond for $ 7 0 0 . The annual coupon rate is 8 % ,

Ten years ago, you bought a

30 -

year bond for $

700 .

The annual coupon rate is

8 %,

the bond makes annual coupon payments, and the face value of the bond is $

1000 .

Today, you sold the bond at a YTM of

6 % .

What was your annual Holding Period Return

(

HPR

)

during the

10

years you owned this bond?

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