In early January 2010, you purchased $39,000 worth of somehigh-grade corporate bonds.

O 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 96.377 when you bought the bonds. Over the ve years from 2010 through 2014, the bonds were priced in the market as follows: a . 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.) The holding period return for 2011 is The holding period return for 2012 is The holding period return for 2013 is The holding period return for 2014 is % % % % . (Round to two decimal places.) . (Round to two decimal places.) . (Round to two decimal places.) . (Round to two decimal places.) 0 Data Table - b. Use the average return information in the given table to evaluate the investment performance of this bond. How do you t O The market has outperformed the corporate bond investment. The average rate of return for the investment is 5.83% O The high-grade corporate bond investment has outperformed the market. The average rate of return for the investme ' (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 96.377 105.183 7.30% 2011 105.183 107.102 11.72% 2012 107.102 109.222 -6.89% 2013 109.222 116.657 7.90%