What is holding period return on investment

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Reference no: EM132000812

1. Bond A is similar to Bond B in all aspects, except that Bond B has a higher coupon rate than Bond A.

If the yield on both bonds increases by 1%, you expect that

a. Bond B will appreciate in price less than Bond A

b. Bond B will depreciate in price less than Bond A

c. Bond B will appreciate in price more than Bond A

d. Bond B will depreciate in price more than Bond A

2. What is the holding period return on an investment over 3 years, if in the first year the return was 5.2%, the second year it was -10% and in the third year the return was 151.3%?

a. 237.93 percent

b. 227.93 percent

c. -190.80 percent

d. 137.93 percent

Reference no: EM132000812

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