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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 year investment horizon is considering purchasing a year coupon bond for $ This means the YTM today is The investor expects to be able to reinvest the coupon interest payments at an annual interest rate of Please note that is a nominal rate, is the effective semiannual interest rate that we should adopt and that at the end of the planned investment horizon, the then year bond will be selling to offer a YTM of
Please determine the projected bond price at the end of year
Hint: the implicit par value of this bond is $ The implicit frequency of coupon payments is semiannual.
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