Question: You buy a 1 - year 1 2 % - coupon bond with a yield to maturity of 9 % and a par value of

You buy a 1-year 12%-coupon bond with a yield to maturity of 9% and a par value of $1,000. The
coupon rate is an annualized percentage rate and the coupons are paid quarterly. Yield to maturity is
an annualized simple interest rate compounded quarterly. The bond yield has risen to 10% at the
end of 3 months. What is your holding period return if you hold the bond for 3 months and then sell
it immediately afterwards?
You buy a 1-year 12%-coupon bond with a yield to maturity

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