Anewly issued bond pays its coupons once a year. its coupon rate is 4.1%, its maturity is 15 years, and its yield to maturity is 7.1%. a. find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity of 6.1% by the end of the year. (do not round intermediate calculations. round your answer to 2 decimal places.)

Explanation:

HPR =   + Income( +Price Earn- Price Paid )   /  Price Paid    

It means you have to sum the income of the bond (interest) plus the earning price ( difference Price Ear less Price Paid) , that amount must be divided by the Price Paid.

In this case the result is:

It's necessary to define the Face value of the bond on both period.

 728   YTM 7,1%  

1  $ 1.000$ 41

2  $ 1.000$ 41

15  $ 1.000$ 1.041

nice

explanation:

you two can make a great couple, goodluck caring for each other