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Assume you buy a bond with the following features Bond maturity = 4 = Coupon Rate = 6.00% Face Value = = $1,000 Annual Coupons

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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 = 5.00% Immediately after you buy the bond the interest rate changes to 6.70% What is the "reinvestment" effect in year 3? -$3.18 $3.18 -$3.27 O $3.27

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