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27 January, 04:38

You purchased a bond 81 days ago for $921.95. You received an interest payment of $32.00 74 days ago. Today the bond's price is $1,047.64. What is the holding period return (HPR) on the bond as of today?

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  1. 27 January, 05:04
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    HPR on the bond is 17.1%

    Explanation:

    The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.

    According to given data

    Interest received = $32.0

    Initial Value = $921.95

    Today value = 1,047.64

    HPR = Income + [ (End of period value - Initial Value) / initial value ]

    HPR = Interest received + [ (Today value - Initial Value) / initial value ]

    HPR = [ $32.0 + (1047.64 - 921.95) / 921.95 ]

    HPR = [ $32.0 + (1047.64 - 921.95) / 921.95 ]

    HPR = 157.69 / 921.95

    HPR = 0.171

    HPR = 17.1%
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Home » Business » You purchased a bond 81 days ago for $921.95. You received an interest payment of $32.00 74 days ago. Today the bond's price is $1,047.64. What is the holding period return (HPR) on the bond as of today?
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