Can you please help me with this? Consider an annual coupon bond with a face value of
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Can you please help me with this?
Consider an annual coupon bond with a face value of $100 9 years tomaturity, and a price of $95.
The coupon rate on the bond is 5%. If you can reinvest coupons at a rate of 3% perannum, then how much money do you have if you hold the bond tomaturity?
I am confused with where the price falls into place here?
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