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Consider an annual coupon bond with a face value of $ 100 , 11 years to maturity, and a price of $ 85 . The

Consider an annual coupon bond with a face value of

$100,

11

years to maturity, and a price of

$85.

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?

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