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Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 5% Face Value = $1,000 Annual Coupons When you

Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 5% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 4.75% Immediately after you buy the bond the interest rate changes to 5.78% What is the "reinvestment" effect in year 3 ? Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 3% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 3.95% Immediately after you buy the bond the interest rate changes to 5.72% What is the "reinvestment" effect in year 3

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