Question
An investor buys a 15-year semiannual bond with a coupon rate of 7%. He plans to hold the bond for 7 years and then sell
An investor buys a 15-year semiannual bond with a coupon rate of 7%. He plans to hold the bond for 7 years and then sell it. The investor expects to reinvest the first 6 coupon payments at 6.5% and the next 8 payments at 7.5%. The expected total interest under these assumptions is
Question 7 options:
| $227.82 |
| $305.84 |
| $319.64 |
| $547.46 |
| $625.48 |
An investor buys a 15-year semiannual bond with a coupon rate of 7%. He plans to hold the bond for 7 years and then sell it. The investor expects to reinvest the first 6 coupon payments at 6.5% and the next 8 payments at 7.5%. He also expects that the bonds YTM at the end of the holding period will be 8%. The expected bonds price at the end of the holding period is
Question 8 options:
| $922.78 |
| $927.50 |
| $935.23 |
| $941.74 |
| $961.22 |
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