In early January 2014. you purchased 593,000 worth of some high-grade corporate bonds. The bonds carned a coupon al 8% and mature in 2027 You pad 100.732 when you bought the bonds. O priced in the market as follows Annual coupon payments were made on schedule throughout the five year period a. Find the annual holding penod returns for 2014 through 2018 Soo 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 stacks up against the market? Explain a. The holding period return for 2014 is 88.94% (Round to two decimal places) The holding period rotum for 2015 1 7134 (Round to two decimal places) The holding period return for 2016 is 70 15 % (Round to two decimal places) The holding period return for 2017 is 77 15% Round to two decimal places) The holding period return for 2018 is 68.84 (Round to two decimal places) b. Use the average return information in the oven 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 The Treasury bonds have outperformed the corporate bond investment. The average rate of return for tho mestment is 1 30% versus the average rate of return on Treasury bonds, which is 76 The high-grade corporate and investment has outperformed the Treasury bonds. The average role of return for the investment is 761% versus the average rate of return for the Treasury bonde Year 2014 2015 2016 2017 2018 Quoted Prices (% of $1,000 par value) Beginning End of of the Year the Year 100.732 110.327 110.327 109.035 109.035 105.519 105.519 106.926 106.926 100.529 Average Holding Period Return on Treasury Bonds 8.90% 10.80% 1.30% 0.70% 2.90%