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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

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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.

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FIN - 340 - * 4501 Fundamentals of Investments 19 EW 4 Edwin Cruz @ | 4/13 / 19 11:41 PM Out^ @^_ My{Thenes LElo Quire Bone Concepts This Question : 4 pts 4 | 6 of 7 ( 2 complete ) V D This Quiz : 30 pts possible In early January 2010 , you purchased $39 , 000 worth of some high-grade corporate bonds . The bonds carried a coupon of 5 % and mature in 2024 . You paid 96. 37 7 when you bought the bonds . Over the five years from 2010 through 2014 , the bonds were priced in the market as follows : ] . Coupon payments were made on schedule throughout the 5 - year period . 2 . 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 . 2 . The holding period return for 2010 is \\% . ( Round to two decimal places . ) { Data Table The holding period return for 201 1 is \\ % . ( Round to two decimal places . ) The holding period return for 2012 is \\ % . ( Round to two decimal places . ) ( Click on the icon located on the top-right corner of the data table below in order to copy its con into a spreadsheet . ) The holding period return for 2013 is \\ % . ( Round to two decimal places . ) Quoted Prices ( % of $ 1 , 000 par value )* The holding period return for 2014 is\\ % . ( Round to two decimal places . ) Beginning End of Average Holding Period Return Year of the Year the Year on High - Grade Corporate Bonds b. Use the average return information in the given table to evaluate the investment performance of this bond . How do you 2010 96.377 105 . 183 7.30 % 2011 105. 183 107 . 102 11 .72% The market has outperformed the corporate bond investment . The average rate of return for the investment is 5.83 2012 107. 102 109 . 222 - 6.89% O The high-grade corporate bond investment has outperformed the market . The average rate of return for the investor 2013 109 . 222 1 16.657 7.90 % 2014 116.657 126 .224 9 . 1 1% Print Done Click to select your answer ( s )

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