In early January 2010, you purchased $19,000 worth of somehigh-grade corporate bonds. The bonds carried a coupon of 538% and mature in 2024. You paid 91.679 when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market asfollows: LOADING... Coupon payments were made on schedule throughout the5-year period.

a. Find the annual holding period returns for 2010 through 2014. (See Chapter 5 for the HPRformula.)

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 themarket? Explain.

a. The holding period return for 2010 is %. (Round to two decimalplaces.)

The holding period return for 2011 is %. (Round to two decimalplaces.)

The holding period return for 2012 is %. (Round to two decimalplaces.)

The holding period return for 2013 is %. (Round to two decimalplaces.)

The holding period return for 2014 is %. (Round to two decimalplaces.)

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 themarket? Explain.(Select the best choicebelow.)

The market has outperformed the corporate bond investment. The average rate of return for the investment is 5.83% versus the average market rate of 11.62%.

Or

Thehigh-grade corporate bond investment has outperformed the market. The average rate of return for the investment is 11.62% versus the average market rate of 5.83%.

Quoted Prices(% of$1,000 parvalue)

Year

Beginning

of the Year

End of

the Year

Average Holding Period Return

onHigh-Grade Corporate Bonds

2010

91.679

100.029

7.30%

2011

100.029

101.925

11.72%

2012

101.925

105.107

6.89%

2013

105.107

110.909

7.90%

2014

110.909

124.186

9.11%

I LISTED THE ORDER TAHT EACH ONE IS IN SINCE IT WONT LET ME COPY THAT CHART!!