Definition (1):
Holding period yield (HPY) is a rate of discount bringing the current price of a security into line with its stream of expected cash inflows and its expected sale price at the end of the investor’s holding period.
Definition (2):
According to financial-dictionary.thefreedictionary.com, holding period yield (HPY) refers to- “The rate of return (including any interest or dividends paid during the holding period) actually realized on an investment in a bond.” Or,
“The return on an investment during the time one holds the investment.”
The HPY is estimated by keeping the income and other gains on the investment and dividing that by historical cost. It is a helpful method for comparing the actual return to the expected return. The HPY can be calculated for any kind of investment. It is also known as the holding period return (HPR).
Definition (3):
Holding period yield (HPY) is the total yield got from holding an asset or combination of assets over a time period, called the holding period, typically expressed as a percentage. It is calculated based on the total yields from the asset or portfolio (earnings plus fluctuations in value).