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Would holding period return on the investment be and why

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Reference no: EM132741239

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

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

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

Reference no: EM132741239

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