Question
Consider an annual coupon bond with a face value of $100, 10 years to maturity, and a price of $95. The coupon rate on the
Consider an annual coupon bond with a face value of $100, 10 years to maturity, and a price of $95.
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?
The total proceeds from holding the bond to maturity are
$___.
(Round to the nearest cent.)
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Managerial Economics In A Global Economy
Authors: Dominick Salvatore
9th Edition
0190848251, 9780190848255
