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