In July 2015 you purchase a Treasury bond with a face value of AUD 1000, a trading yield of 5.50% per annum and a coupon rate of 7% per annum. The bond makes semi-annual coupon payments and will mature on July 2022. You sell the bond in January 2017, when the trading yield was 6.00% per annum. During the holding period the coupons were reinvested at 5.75% per annum. 

What is the holding period yield of this bond?

Answer rating: 100% (QA)

Calculate the holding period yield of the bond Where Face value of the bond F AUD 1000 Coupon rate C ... View the full answer