Answer:
HPR on the bond is 17.1%
Explanation:
The return received on the asset in the period in which it is held is called holding period return. It included the interest / dividend received and change in the initial price and current price.
According to given data
Interest received = $32.0
Initial Value = $921.95
Today value = 1,047.64
HPR = Income + [ ( End of period value - Initial Value ) / initial value ]
HPR = Interest received + [ ( Today value - Initial Value ) / initial value ]
HPR = [ $32.0 + ( 1047.64 - 921.95 ) / 921.95 ]
HPR = [ $32.0 + ( 1047.64 - 921.95 ) / 921.95 ]
HPR = 157.69 / 921.95
HPR = 0.171
HPR = 17.1%
