In early January 2010, you purchased $38,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 7 6/8% and mature in 2024. You paid 91.145 when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market as follows:

	Quoted Prices
Year	Beginning of the Year	End of the Year	Average Holding Period Return on? High-Grade Corporate Bonds
2010	91.145	96.797	7.30%
2011	96.797	97.921	11.72
2012	97.921	100.575	-6.89
2013	100.575	107.287	7.90
2014	107.287	119.535	9.11

Coupon payments were made on schedule throughout the? 5-year period.

a. Find the annual holding period returns for 2010through 2014.

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.)

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 ---------%. ?(Round to two decimal? places.)

The holding period return for 2014 is ---------%. ?(Round to two decimal? places.)

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.???(Select the best answer? below.)

The? high-grade corporate bond investment has outperformed the market. The average rate of return for the investment is 13.50% versus the average market rate of 5.83%.

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 13.50%.