In early January 2014, you purchased $81,000 worth of some high grade corporate bonds The bonds carried a coupon of 8 and mature in 2027 You paid 101 896 when you bought the bonds Over the five years from 2014 through 2018, the bonds were priced in the market as follows Quoted Prices ( of $1,000 par value) Year Beginning of the Year End of the Year Average Holding Period Return on Treasury Bonds 2014 101 896 109 572 8 90 2015 109 572 107 911 10 80 2016 107 911 106 311 1 30 2017 106 311 106 834 0 70 2018 106 834 101 829 2 90 Annual coupon payments were made on schedule throughout the five year period a Find the annual holding period returns for 2014 through 2018 (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

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In early January 2014, you purchased $81,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 8% and mature in 2027. You

In early January 2014, you purchased $81,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 8% and mature in 2027. You paid 101.896 when you bought the bonds. Over the five years from 2014 through 2018, the bonds were priced in the market as follows:

	Quoted Prices (% of $1,000 par value)
Year	Beginning of the Year	End of the Year	Average Holding Period Return on Treasury Bonds
2014	101.896	109.572	8.90%
2015	109.572	107.911	10.80%
2016	107.911	106.311	1.30%
2017	106.311	106.834	0.70%
2018	106.834	101.829	2.90%

Annual coupon payments were made on schedule throughout the five-year period.

a. Find the annual holding period returns for 2014 through 2018.

(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.