Question
5. You buy a risk-free 4% quarterly paying coupon bond which is selling at par with a face value of $1000 and matures in exactly
5. You buy a risk-free 4% quarterly paying coupon bond which is selling at par with a face value of $1000 and matures in exactly 3 years. Assuming that interest rates do not change between now and maturity and you are able to reinvest coupons at the same interest rate, how much money do you have in 3 years?
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The Handbook Of Traditional And Alternative Investment Vehicles Investment Characteristics And Strategies
Authors: Mark J. P. Anson, Frank J. Fabozzi, Frank J. Jones
1st Edition
0470609737, 978-0470609736
