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