An investor just purchased an annual $15$ year bond that pays $$40$ each year for $15$ years, and $$1,000$ in

the final year. The investor believes she can reinvest the coupon payments each year at a $$7\%,$ interest

rate.

If the yield to maturity on the bond is $$5\mathrm{.}5\%,$ then what is the price of the bond?

How much money will the investor have in $15$ years, if he reinvests the coupon payments at the $$7\%$

interest rate?