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10.11 (similar to) in early January 2010, you purchased $37,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 89% and mature

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10.11 (similar to) in early January 2010, you purchased $37,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 89% and mature in 2024. You paid 96.632 when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market as follows: B.Coupon payments were made on schedule throughout the 5-year period. a. Find the annual holding period returns for 2010 through 2014. (See Chapter 5 for the HPR formula) b. Use the average return information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the market? Explain. a. The holding period return for 2010 is %. (Round to two decimal places) Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its content into a spreadsheet.) Quoted Prices (% of $1,000 par value) Beginning End of Average Holding Period Return Year of the Year the Year on High-Grade Corporate Bonds 2010 96.632 104.797 7.30% 2011 104.797 106.358 11.72% 2012 106.358 110.193 -6.89% 2013 110.193 116.998 7.90% 2014 116.998 128.642 9.11%

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