You purchased a 3 year, $1,000 face value, 5% annual coupon paying bond at par value. After two years the bond has a YTM of 4% and you sell the bond immediately after receiving your coupon. If you reinvested the coupons at 5% over your holding period.

What was your two year holding period return?

Answer rating: 100% (QA)

To calculate the twoyear holding period return we need to consider the initial purchase price the co... View the full answer