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An investor purchases a 1 4 - year, 5 . 9 % annual coupon payment bond at a price equal to par value. After the

An investor purchases a 14-year, 5.9% 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 1%. The investor sells the bond after 7 years. Assume that interest rates remain unchanged
at 5.9+1% over the 7-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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