Explain holding-period return for a single period


Problem:

Can anyone explain Holding-Period Return for a Single Period?

HPR = [I + (P0 - P1)] / P0

Given:

CR = 8%
YTM = 8%
N = 10 years
Compounding = Semiannual
P0 = $1000

In six months the rate falls to 7% what is the HPR?

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Finance Basics: Explain holding-period return for a single period
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