The annualized holding period yield (h) is simply the rate of discount equalizing the market price of the debt security worth all annual payments between the time the asset was purchased and the time it is sold.

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The annualized holding period yield (h) is the rate of discount that equates the market price of the debt security to the present value of all annual payments between the time the asset was purchased and the time it is sold.

The Annualized Holding Period Yield (H) Is Simply the Rate