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An investor with a 5 - year investment horizon is considering purchasing a 1 5 - year 7 % coupon bond for $ 9 1

An investor with a 5-year investment horizon is considering purchasing a 15-year 7% coupon bond for $913.54. This means the YTM today is 8%. The investor expects to be able to reinvest the coupon interest payments at an annual interest rate of 6%(Please note that 6% is a nominal rate, 3% is the effective semi-annual interest rate that we should adopt) and that at the end of the planned investment horizon, the then 10-year bond will be selling to offer a YTM of 20%.
Please determine the projected bond price at the end of year 5.(The much higher YTM is usually due to the surge of credit risk)
Group of answer choices
446.62
652.31
813.07
1214.30

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