Question
Consider an annual coupon bond with a face value of $ 100 , 10 years to maturity, and a price of $ 92 . The
Consider an annual coupon bond with a face value of $100, 10 years to maturity, and a price of $92. The coupon rate on the bond is 3%. If you can reinvest coupons at a rate of 5% per annum, then how much money do you have if you hold the bond to maturity?
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Microeconomics: An Intuitive Approach With Calculus
Authors: Thomas Nechyba
2nd Edition
1305650468, 978-1305650466
