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Consider a 4Y 10% semi-annual coupon paying bond priced at $112.57 with a yield to maturity of 5%. The first coupon is due to be

Consider a 4Y 10% semi-annual coupon paying bond priced at $112.57 with a yield to maturity of 5%. The first coupon is due to be paid on 5th February 2021 and the investor sells the bond on 2nd December 2020. Which of the following statements is correct?

Question options:

The coupon reinvestment income is $0

The realized rate of return is 5%

The value of the coupon payments is $40

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