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Five years ago, John bought the annual - coupon bond of XYZ . The coupon rate is 9 % . Five years ago, the yield

Five years ago, John bought the annual-coupon bond of XYZ. The coupon rate is 9%. Five years ago, the yield-to-maturity of XYZ was 8% and the years to maturity of the bond was 15 John has already held it for five years as of today and he is selling XYZ bond today. He reinvested the coupon at the rate of 5% per year over the past five years. The current yield-to-maturity is 11%. Par value is $1,000.
What is the geometric rate of return of the investment?
Initial Investment = I
FV from coupon reinvestments =
Price of bond five years later =
Total ending value = EV =
Rg =___%

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