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As a pension fund manager - you purchased $1,000,000 of the par value following bond issuance: 10 year bond with a coupon rate of 6%
As a pension fund manager - you purchased $1,000,000 of the par value following bond issuance: 10 year bond with a coupon rate of 6% (pays interest annually). The first annual coupon payment will be made one year from now.\ \ How much will you have if you hold the bond till maturity (10 years from now), and you reinvest all the annual interest payments at an annual interest rate of 7.1%?
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