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Suppose I purchased a 2 year bond at par $1000 paying 10% annually. Then the YTM is 10% but the holding period return would be 20%. Shouldn't those 2 values be the same since I am holding the bond to its maturity?

When calculating holding period return for any time period why do we not discount the future cash values so we can compare the return in terms of today's value of money?

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YTM is typically presented as an annual number.

To your second point, returns don't typically include separate inflation adjustments or discounts. Those factors would already be considered in the yield the market is willing to pay.

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