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Consider an annual coupon bond with a face value of $100, 3 years to maturity, and a price of $95. The coupon rate on the
Consider an annual coupon bond with a face value of $100, 3 years to maturity, and a price of $95. The coupon rate on the bond is 7%. If you can reinvest coupons at a rate of 1% per annum, then how much money do you have if you hold the bond to maturity?
The total proceeds from holding the bond to maturity are $_______ (round to the nearest cent)
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