RETURNS
Annualized Return
Converts a sub-year or multi-year holding return to an annualized rate.
Formula
Annualized = (1+HPR)^(year fraction^-1)-1
Variables: HPR holding-period return; year fraction
What it means
Converts a sub-year or multi-year holding return to an annualized rate.
Example
A 2% return over roughly half a year annualizes to approximately 4.04% with geometric compounding.
How to interpret it
This concept should be read together with its market convention, measurement horizon and underlying instrument. BondStats presents it as an analytical reference rather than investment advice; instrument documentation and primary market rules remain authoritative.
Related Formulas
BondStats reference content is independently written. Mathematical relationships, abbreviations and market conventions are presented for educational and analytical use.