Question
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 6.00% Face Value = $1,000 Annual Coupons When you
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 6.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 6.00% Immediately after you buy the bond the interest rate changes to 7.00% What is the "reinvestment" effect in year 4 ?
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Corporate Financial Management
Authors: Glen Arnold
5th edition
978-1292178066, 129217806X, 273758837, 978-0273758839
