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An investor purchases a 1 2 - year, 8 . 1 % annual coupon payment bond at a price equal to par value. After the

An investor purchases a 12-year, 8.1% annual coupon payment bond at a price equal to par
value. After the bond is purchased and before the first coupon is received, interest rates increase
by 0.6%. The investor sells the bond after 5 years. Assume that interest rates remain unchanged
at 8.1+0.6% over the 5-year holding period.
Per 100 of par value, what is the future value of the reinvested coupon payments at the end of the
holding period?

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