What is the holding period return on bond

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Reference no: EM132031013

The Farmer National Bank has purchased a bond that has a coupon rate of 11.5% and a face value of $1000. It has 16 years to maturity and is currently selling in the market for $1309.80. The bond makes annual coupon payments. The Farmer National Bank plans on selling this bond at the end of 8 years for $1071 (ex-interest). What is the holding period return on this bond?

Reference no: EM132031013

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