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. An investor purchases a just issued 30-year, 10.000% semi-annual coupon bond at 104.079 percent of par value and sells it after 10 years. The

. An investor purchases a just issued 30-year, 10.000% semi-annual coupon bond at 104.079 percent of par value and sells it after 10 years. The bonds yield to maturity is 9.584%, and assume it is constant through the bonds life. All coupons are reinvested to maturity at the yield to maturity. Show the sources of return below. Total coupon payments: Reinvestment income from coupons: Sale price of the bond after 10 years: Total value after 10 years: Realized rate of return (horizon yield) after 10 year

An investor purchases a just issued 30-year, 10.000% semi-annual coupon bond at 104.079 percent of par value and holds it to maturity. The bonds yield to maturity is 9.584% at time of sale, and rises to 10.100% immediately after the purchase but before the first coupon is received. All coupons are reinvested to maturity at the new yield to maturity. Show the sources of return below. Total coupon payments: PAR value at maturity: Reinvestment income from coupons: Total value at maturity: Realized rate of return (horizon yield) at maturity:

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