Calculate one-year holding period return

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Suppose you just purchased a bond with 18 years to maturity that pays an annual coupon of $32.00 and is selling at par. Calculate the one-year holding period return for each of these three cases:

a. The yield to maturity is 4.70% one year from now. (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) HPR %

b. The yield to maturity is 2.10% one year from now. HPR %

Reference no: EM131586325

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