Solved: What would holding period return be after nine months, Financial Accounting

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What would holding period return be after nine months

Response to the following problem:

Assume that an investor pays $800 for a long-term bond that carries an 8% coupon. In three years, he hopes to sell the issue for $950. If his expectations come true, what realised yield will this investor earn? (Use annual compounding.)

What would the holding period return be if he were able to sell the bond (at $950) after only nine months?

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Financial Accounting: What would holding period return be after nine months

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