You purchased a bond 90 days ago for $881.03. You received aninterest payment of $20.00...

You purchased a bond 90 days ago for $881.03. You received an interest payment of $20.00 50 days ago. Today the bond’s price is $830.64. What is the holding period return (HPR) on the bond as of today? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) HPR %

Expert Solution

Ans:- Holding Period Return = [ Ending Value + Income earned - Initial Value ] / Initial Value * 100

= [ $830.64 + $20.00 - $881.03 ] / $881.03 * 100 = -3.45%

Therefore, the HPR of the bond is -3.45%.

jeff jeffy answered 2 years ago

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