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Calculation 5 (Calculation, 10 points) An investor purchases a two-year, 6% annual coupon payment bond at a price equal to par value. After the bond

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Calculation 5 (Calculation, 10 points) An investor purchases a two-year, 6% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase to 7%. The investor sells the bond after one year. Assume that interest rates remain unchanged at 7% over the holding period Per 100 of par value, what is the future value of the reinvested coupon payments at the end of the holding period? (Remember that for any credit you must show all your work.)

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