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exactly 9 years to maturity 8% coupon, semiannually 9% yield to maturity $100 par value Suppose you hold the bond above until maturity and its

exactly 9 years to maturity

8% coupon, semiannually

9% yield to maturity

$100 par value

Suppose you hold the bond above until maturity and its yield does not change. Answer the following two questions.

a. what is the value of the reinvested coupons at the maturity date?

b. what would be your annualized rate of return?

a. $107, 9%

b. $119, 9%

c. $72, 9%

d. $109.5, 4.5%

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