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Question - Saved to ClearviewHCmgmt.infoGlobal Mailings Review View Help Grammarly Foxit Reader PDF Search Pa T AaBbCcDc AaBbCcDc AaBbC AaBbCcE AaB AaBbCct AaBbCcl 1
Question - Saved to \\ClearviewHCmgmt.info\Global Mailings Review View Help Grammarly Foxit Reader PDF Search Pa T AaBbCcDc AaBbCcDc AaBbC AaBbCcE AaB AaBbCct AaBbCcl 1 Normal Title 1 No Spac... Heading 1 Heading 2 Subtitle Subtle Em E Paragraph Styles In early January 2010, you purchased $44,000 worth of some high-grade corporate bonds. The bonds carried a coupon 11 5/8% and mature in 2024. You paid 95.793 when you bought the bonds. Over the five years from 2010 through 2014, Coupon payments were made on schedule throughout the 5-year period. a. Find the annual holding period returns for 2010 through 2014. (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 the bonds were priced in the market as follows: Quoted Prices (% of $1,000 par value) Beginning of the Year Average Holding Period Return on High-Grade Corporate Bonds Year End of the Year 2010 95.793 104.239 7.30% 2011 104.239 106.604 11.72% 2012 106.604 108.698 -6.89% 2013 108.698 114.628 7.90% 2014 114.628 127.939 9.11% I
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