Holding Period Yield Formula

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Holding Period Yield is a measure of the total return on an investment over a specific period, taking into account both capital appreciation or depreciation and any income generated by the investment. Check FAQs
HPY=Int.p+FV-PFV
HPY - Holding Period Yield?Int.p - Interest Paid?FV - Face Value?P - Purchase Price?

Holding Period Yield Example

With values
With units
Only example

Here is how the Holding Period Yield equation looks like with Values.

Here is how the Holding Period Yield equation looks like with Units.

Here is how the Holding Period Yield equation looks like.

8.4Edit=6000Edit+800Edit-80Edit800Edit
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Holding Period Yield Solution

Follow our step by step solution on how to calculate Holding Period Yield?

FIRST Step Consider the formula
HPY=Int.p+FV-PFV
Next Step Substitute values of Variables
HPY=6000+800-80800
Next Step Prepare to Evaluate
HPY=6000+800-80800
LAST Step Evaluate
HPY=8.4

Holding Period Yield Formula Elements

Variables
Holding Period Yield
Holding Period Yield is a measure of the total return on an investment over a specific period, taking into account both capital appreciation or depreciation and any income generated by the investment.
Symbol: HPY
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Interest Paid
Interest Paid is the amount which has to be paid by the firm as an interest towards claimed benefits/ facilities from bank or any institution.
Symbol: Int.p
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Face Value
Face Value is the nominal value or dollar value of a security stated by the issuer.
Symbol: FV
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.
Purchase Price
The Purchase Price is the price an investor pays for an investment, and the price becomes the investor's cost basis for calculating gain or loss when selling the investment.
Symbol: P
Measurement: NAUnit: Unitless
Note: Value should be greater than 0.

Other formulas in Bond Yield category

​Go Yield to Maturity
YTM=CP+(FV-PriceYrs)FV+Price2
​Go Current Bond Yield
CBY=CPCBP
​Go Coupon Bond Valuation
CB=CA(1-(1+YTM)-nPYrYTM)+(Pvm(1+YTM)nPYr)
​Go Bank Discount Yield
BDY=(DFV)(360DTM)100

How to Evaluate Holding Period Yield?

Holding Period Yield evaluator uses Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value to evaluate the Holding Period Yield, The Holding Period Yield formula is defined as a measure of the total return on an investment over a specific period, taking into account both capital appreciation or depreciation and any income generated by the investment. Holding Period Yield is denoted by HPY symbol.

How to evaluate Holding Period Yield using this online evaluator? To use this online evaluator for Holding Period Yield, enter Interest Paid (Int.p), Face Value (FV) & Purchase Price (P) and hit the calculate button.

FAQs on Holding Period Yield

What is the formula to find Holding Period Yield?
The formula of Holding Period Yield is expressed as Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value. Here is an example- 8.4 = (6000+800-80)/800.
How to calculate Holding Period Yield?
With Interest Paid (Int.p), Face Value (FV) & Purchase Price (P) we can find Holding Period Yield using the formula - Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value.
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