Explain when the HPR will be equal to the yield to maturity

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Question - Assume that you bought an 8% coupon bearing bond with 4 years to maturity at par and sold it before maturity.

a) Would your holding period return (HPR) on the investment be necessarily the same as 8%?

b) Explain (in fewer than three lines) when the HPR will be equal to the yield to maturity.

Reference no: EM132743654

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