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A $1,000 face value corporate bond is purchased at the market price of $850 on January 1, 2021. It pays 5 percent interest annually on
A $1,000 face value corporate bond is purchased at the market price of $850 on January 1, 2021. It pays 5 percent interest annually on December 31 and will mature on December 31, 2030. Assume the bond's interest payments are reinvested at a rate of 4 percent per annum. (3 p Underline at is the future value of the reinvested coupons (there are 10 years of coupons received between 2021 and 2030)? (3 pts) Given the purchase price of $850, the maturity value of $1,000 added to the future value of the reinvested coupons, what is the bond's average annual compound return? (3 pts) Repeat this calculation assuming bond interest is reinvested at 8 percent per annum. What is the bond's average annual compound return
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