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Business, 11.11.2019 23:31 maddyjones4172

In early january 2010, you purchased $50,000 worth of somehigh-grade corporate bonds. the bonds carried a coupon 5 2/8% and mature in 2024. you paid 94.526 when you bought the bonds. over the five years from 2010 through 2014, the bonds were priced in the market as follows: (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

year , 1.beginning of the year,2. end of the year, 3.average holding period return on high-grade corporate bonds

2010, 94.526, 103.798,    7.30%

2011, 103.798, 106.002, 11.72

2012, 106.002, 110.324, −6.89

2013, 110.324, 116.293, 7.90

2014, 116.293, 127.169, 9.11

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.

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