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The yield-to-maturity on a bond is the interest rate you earn on your investment if interest rates do not change. If you actually sell the bond before it matures, your realized return is known as the holding period yield. Suppose that today, you buy a 12 percent annual coupon bond for $1,000. The bond has 13 years to maturity. Two years from now, the yield-to-maturity has declined to 11 percent and you decide to sell. What is your holding period yield?

Question ID
534526

Created
April 21, 2011 4:08am UTC

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https://questions.llc/questions/534526

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  1. test

    Answer ID
    1904255

    Created
    October 3, 2019 9:26am UTC

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