P10.6 In early January 2004, you purchased $30 000 worth of some high-grade corporate bonds. The bonds carried a coupon of 8.1% and mature in 2018. You paid 94.125 when you bought the bonds. Over the five-year period from 2004 through 2008, the bonds were priced in the market as follows:

1LG 3LG 2LG 2LG 2LG 2LG 6LG 6LG 6LG Quoted Prices Year Beginning of Year End of Year Year-End Bond Yields 2004 941.25 1006.25 8.82%

2005 1006.25 1020.00 8.70 2006 1020.00 1046.25 8.48 2007 1046.25 1102.50 8.05 2008 1102.50 1211.25 7.33