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In early January 2010, you purchased $28,000 worth of some high-grade corporate bonds. The bonds camed a coupon of 7 % and mature in 2024.

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In early January 2010, you purchased $28,000 worth of some high-grade corporate bonds. The bonds camed a coupon of 7 % and mature in 2024. You paid 92 918 when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market as follows: EE 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 %. (Round to two decimal places.) The holding period return for 2011 is%.(Round to two decimal places.) The holding period return for 2012 is (Round to two decimal places.) The holding period return for 2013 is D%. (Round to two decimal places.) The holding period return for 2014 is (Round to two decimal places.) b. Use the average retum information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the market? Explain. (Select the best choice below.) O O The high-grade corporate bond investment has outperformed the market. The average rate of return for the investment is 12.19% versus the average market rate of 5.83%. Te market has outperformed he corporate bond investment. The average rate o return or the investments 5 83% versus the average market rate of 2. In early January 2010, you purchased $28,000 worth of some high-grade corporate bonds. The bonds camed a coupon of 7 % and mature in 2024. You paid 92 918 when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market as follows: EE 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 %. (Round to two decimal places.) The holding period return for 2011 is%.(Round to two decimal places.) The holding period return for 2012 is (Round to two decimal places.) The holding period return for 2013 is D%. (Round to two decimal places.) The holding period return for 2014 is (Round to two decimal places.) b. Use the average retum information in the given table to evaluate the investment performance of this bond. How do you think it stacks up against the market? Explain. (Select the best choice below.) O O The high-grade corporate bond investment has outperformed the market. The average rate of return for the investment is 12.19% versus the average market rate of 5.83%. Te market has outperformed he corporate bond investment. The average rate o return or the investments 5 83% versus the average market rate of 2

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