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Exactly five years ago, Dan bought a bond issued by Titan Co with par value $1,000 and coupon rate 4% (paid semiannually). At the time
Exactly five years ago, Dan bought a bond issued by Titan Co with par value $1,000 and coupon rate 4% (paid semiannually). At the time of purchase, the bond had 21 years to maturity and yield to maturity was 5% BEY. On average, Dan reinvested coupons to earn 5.2% BEY. Dan's sold the bond today with yield to maturity 3% BEY.
a) Calculate the value of reinvested coupons at the sale date. Carry all your calculations to at least three digits after the decimal point and express your answer with three digits after the decimal point (e.g., 123.456).
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