HELP ASAP!! In early January 2010 ,you purchased 39,000 worth of some high-grade corporate bonds. The...
HELP ASAP!!
In early January 2010 ,you purchased 39,000 worth of some high-grade corporate bonds. The bonds carried a coupon of 6 2/8% and mature in 2024 You paid 94.148when you bought the bonds. Over the five years from 2010 through 2014, the bonds were priced in the market as follows:
Coupon payments were made on schedule throughout the 5-year period.a. Find the annual holding period returns for 2010through 2014
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.
a. The holding period return for 2010is nothing %. (Round to two decimal places.)
The holding period return for 2011 is nothing %.(Round to two decimal places.)
The holding period return for 2012 is nothing %. (Round to two decimal places.)
The holding period return for 2013 is nothing %.(Round to two decimal places.)The holding period return for 2014 is nothing %.(Round to two decimal places.)
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.)
|
Quoted Prices (% of $1,000 par value) |
||||
|
Year |
Beginning of the Year |
End of the Year |
Average Holding Period Return on High-Grade Corporate Bonds |
|
|
2010 |
94.148 |
100.943 |
7.30 % |
|
|
2011 |
100.943 |
102.072 |
11.7211.72 % |
|
|
2012 |
102.072 |
105.718 |
negative6.89 % |
|
|
2013 |
105.718 |
113.223 |
7.90 % |
|
|
2014 |
113.223 |
125.444 |
9.11 % |
|
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HELP ASAP!!
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