Determine the percentage holding period return

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Suppose a Midwest Telephone and Telegraph (MTT) Company bond, maturing in one year, can be purchased today for $975. Assuming that the bond is held until maturity, the investor will receive $1,000 (principal) plus 6 percent interest (that is, 0.06 × $1000 = $60). Determine the percentage holding period return on this investment.

Reference no: EM131119640

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