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An investor purchases a 3-year, 8% annual coupon bond at $90 and hold it to maturity. The face value is $100. The bonds yield-to-maturity goes

  1. An investor purchases a 3-year, 8% annual coupon bond at $90 and hold it to maturity. The face value is $100. The bonds yield-to-maturity goes up from 10.40% to 12% straight after the purchase. What is the total interest on reinvested coupons? What is the investors rate of return?

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