Solved: Determine the holding period return, Financial Accounting

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Determine the holding period return

Response to the following problem:

You are considering purchasing a bond that pays annual interest of $50 per $1000 of par value. The bond matures in one year, when you will collect the par value and the interest payment. If you can purchase this bond for $950, what is the holding period return?

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Financial Accounting: Determine the holding period return

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