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Answer the following. a. Consider a 30 year coupon bond with $75 annual coupons. The next coupon is due one year from today. Assume that
Answer the following.
a.
Consider a 30 year coupon bond with $75 annual coupons. The next coupon is due one year from today. Assume that the yield curve is flat and so all yields are 8%, and yields are expected to remain constant over the bond's life. At maturity, how much interest will a bond investor have earned on the re-invested coupons? O A. $8,496.24 O B. $2,025.00 O C. $6,246.24 O D. $4,300.25 O E. $7,754.70Step by Step Solution
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