Holding Period Yield Calculator

✖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.ⓘ Interest Paid [Int.p]			+10% -10%
✖Face Value is the nominal value or dollar value of a security stated by the issuer.ⓘ Face Value [FV]			+10% -10%
✖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.ⓘ Purchase Price [P]			+10% -10%

✖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.ⓘ Holding Period Yield [HPY]

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Formula

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Holding Period Yield

Formula

`"HPY" = ("Int.p"+"FV"-"P")/"FV"`

Example

`"8.4"=("6000"+"800"-"80")/"800"`

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Holding Period Yield Solution

STEP 0: Pre-Calculation Summary

Formula Used

Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value
HPY = (Int.p+FV-P)/FV
This formula uses 4 Variables

Variables Used

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.
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.
Face Value - Face Value is the nominal value or dollar value of a security stated by the issuer.
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.

STEP 1: Convert Input(s) to Base Unit

Interest Paid: 6000 --> No Conversion Required
Face Value: 800 --> No Conversion Required
Purchase Price: 80 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

HPY = (Int.p+FV-P)/FV --> (6000+800-80)/800

Evaluating ... ...

HPY = 8.4

STEP 3: Convert Result to Output's Unit

8.4 --> No Conversion Required

FINAL ANSWER

8.4 <-- Holding Period Yield

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Kashish Arora

Satyawati College (DU), New Delhi

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< 10+ Bond Yield Calculators

Coupon Bond Valuation

Go Coupon Bond = Annual Coupon Rate*((1-(1+Yield to Maturity (YTM))^(-Number of Payments Per Year))/(Yield to Maturity (YTM)))+(Par Value at Maturity/(1+Yield to Maturity (YTM))^(Number of Payments Per Year))

Yield to Call for Callable Bond

Go Yield to Call = ((Coupon Payment+(Theoretical Price of Call Option-Current Bond Price)/Number of Years to Track Growth)/((Theoretical Price of Call Option+Current Bond Price)/2))

Bond Convexity Approximation

Go Bond Convexity Approximation = (Bond Price when Incremented+Bond Price when Decremented-2*(Bond Value))/(2*Bond Value*(Change in Interest Rate)^2)

Yield to Maturity

Go Yield to Maturity (YTM) = (Coupon Payment+((Face Value-Price)/Years to Maturity))/((Face Value+Price)/2)

Holding Period Yield

Go Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value

Zero Coupon Bond Effective Yield

Go Zero Coupon Bond Effective Yield = (Face Value/Present Value)^(1/Number of Periods)-1

Zero Coupon Bond Value

Go Zero Coupon Bond Value = Face Value/(1+Rate of Return/100)^Time to Maturity

Bank Discount Yield

Go Bank Discount Yield = (Discount/Face Value)*(360/Days to Maturity)*100

Money Market Yield

Go Money Market Yield = Holding Period Yield*360/Time till Maturity

Current Bond Yield

Go Current Bond Yield = Coupon Payment/Current Bond Price

Holding Period Yield Formula

Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value
HPY = (Int.p+FV-P)/FV

What is Holding Period Yield?

The holding period yield (HPY) is a crucial metric for investors seeking to evaluate the performance of their investments over a specific time frame. By taking into account both capital appreciation or depreciation and any income generated by the investment, the HPY provides a comprehensive measure of the total return during the holding period. Investors commonly use HPY to assess the effectiveness of their investment decisions, as it offers a clear percentage-based representation of the profitability of an investment within a specific timeframe.

How to Calculate Holding Period Yield?

Holding Period Yield calculator uses Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value to calculate 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 calculate Holding Period Yield using this online calculator? To use this online calculator for Holding Period Yield, enter Interest Paid (Int.p), Face Value (FV) & Purchase Price (P) and hit the calculate button. Here is how the Holding Period Yield calculation can be explained with given input values -> 8.4 = (6000+800-80)/800.

FAQ

What is 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 and is represented as HPY = (Int.p+FV-P)/FV or Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value. 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, Face Value is the nominal value or dollar value of a security stated by the issuer & 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.

How to calculate 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 is calculated using Holding Period Yield = (Interest Paid+Face Value-Purchase Price)/Face Value. To calculate Holding Period Yield, you need Interest Paid (Int.p), Face Value (FV) & Purchase Price (P). With our tool, you need to enter the respective value for Interest Paid, Face Value & Purchase Price and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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