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(21-24) You purchased a bond five years ago that had a 15% coupon rate. Although you initially assumed you could earn a 15% compound rate

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(21-24) You purchased a bond five years ago that had a 15% coupon rate. Although you initially assumed you could earn a 15% compound rate of retum the interest rates in the market fell over your holding period resulting in the reinvestment rates indicated below. Construct a terminal wealth analysis and determine your compound rate of return CR 15% RR Total Itate in Teginning Compound Simple Compound Value Interest Interest Interest Ending Value Year Interest Year 1 2 0.12 3 0.00 4 0.06 0.00 Totals (21) (22) (23) PV FV N 124) Rate (25) Determine the duration of a 100 year zero coupon bond with a par value of $10,000 and a 6% yield

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