10.
Victor Chow, CFA, held a 10% coupon bond for six months while the following results:
Initial price: 100% of par
End of holding period price: 97% of par
The holding period yield and Effective annual yield of the bond is closest to:
HPY
EAY
A.
7.00% 10.00%
B.
7.00% 14.49%
C.
14.00% 14.49% |
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Ans: B; Holding period return determines the return that an investor will earn by holding the instrument to maturity; as used here, this measure refers to an unannualized rate of return. The formula to calculate holding period return is as below:
In this problem, assume par value is 100, P0=100, P1=97, and D1= 10, so HPY=7%
effective annual yield is calculated as below:
In this problem,
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发表于 2013-9-11 09:34
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