What is the holding period yield on your investment

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The YTM on a bond is the interest rate you earn on your investment if interest rates don’t change. If you actually sell the bond before it matures, your realized return is known as the holding period yield (HPY)b1. Two years from now, the YTM on your bond has declined by 1 percent, and you decide to sell. What price will your bond sell for b2. What is the HPY on your investment?

Reference no: EM13880717

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