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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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