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A 2 5 - year maturity corporate bond has a 6 . 5 % coupon rate ( the coupons are paid semiannually ) . The
A year maturity corporate bond has a coupon rate the coupons are paid semiannually The bond currently sells for $ You plan to hold the bond for years. You believe that you will be able to reinvest the coupons earned over the next years at a rate of return. A bond market analyst forecasts that in years yield rates on these bonds will be at
What are the total coupon payment plus interest on interest at the end of year based on the expected reinvestment rate? points
What will be the resale value of the bond given the future yield at the end of investment horizon? points
What is your total return if you plan on selling the bond in years? points
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