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In early January 2010, you purchased S39.000 worth of some high-grade corporate bonds The bonds carned a coupon of 8 % and mature in 2024

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In early January 2010, you purchased S39.000 worth of some high-grade corporate bonds The bonds carned a coupon of 8 % and mature in 2024 You paid 93 027 when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market as followsCoupon 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? Data Table Explain a. The holding period return for 2010 is D % (Round to two decinal places) The holding period return for 2011 is% (Round to two decimal places) The holding period return for 2012, % (Round to two decimal places) The holding period return for 2013.]% (Round to two decimal pla The holding period return for 2014 is [1% (Round to two decimal places ) ces) 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 choice below) O The market has outperformed he corporate bond investment The average rate of retum for the investment is 5.83% versus th e average market rate of 13 71% The hialorade corporate bond investment has outperformed the market The average rate of return for the investment is 13 71% versus the average market- Click to select your answer(s) In early January 2010, you purchased S39,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 8 % and mature in 2024 You paid 93027 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- a. Find the annual holding b. Use the average return i Explain Data Table gainst the market? a. The holding period return(Click on the icon located on the top-right coner of the data table below in order to copy its contents The holding period return fo The holding period returm fo The holding period return fo The holding period return to 2012 100 869 into a spreadsheet) Quoted Prices (% of $1,000 par value) Average Holding Period Return on High Grade Corporate Bonds 7 30% 11 72% -6 89% 7 90% 9,11% Beginning End of the Year 99 493 100 869 103 361 110 793 122 296 Year 2010 2011 of the Year 93 027 99 493 103.361 b. Use the average return i Explain (Select the best d 2013 2014 110 gainst the market? The market has outpe O The high-grade corporh Click to select your answer(s) PrintDone e market rate of 1371% is the average market Activate Windou

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