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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 year, 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 The investor sells the bond after years. Assume that interest rates remain unchanged
at over the year holding period.
Per of par value, what is the future value of the reinvested coupon payments at the end of the
holding period?
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