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An investor with a 5 - year investment horizon considers purchasing a 1 0 - year $ 1 , 0 0 0 face value bond

An investor with a 5-year investment horizon considers purchasing a 10-year $1,000 face value bond with a 7.5% coupon rate for $1050.20. The yield to maturity is 6.8%. The investor expects to be able to reinvest the coupon interest payments at an annual interest rate of 8.4% and at the end of the planned investment horizon the bond will be selling to offer a yield to maturity of 6.2%. Please calculate (1) interest-on-interest, (2) total dollar return, and (3) total return. (10pt)
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