Holding Period Return
The holding period return differs from the
previous two measures in that it is
computed for the actual period of time that
the bond is held.
Example:
If a bond is purchased for $1100, pays a
coupon of $120 at the end of the year, and is
then sold for $1210, the holding period
return = (120 + 1210-1100)/1100 = 20.91%