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In early January 2010, you purchased $17,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 11% and mature in 2024. You

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In early January 2010, you purchased $17,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 11% and mature in 2024. You paid 95.312 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. 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.) i . X Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents 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 95.312 102.708 7.30% 2011 102.708 103.797 11.72% 2012 103.797 105.683 -6.89% 2013 105.683 111.915 7.90% 2014 111.915 121.872 9.11% Enter your answer Print Done

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