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Five years ago you bought a 10% coupon bond for $950. Today you sold the bond for 1,050. What is your rate of return on
Five years ago you bought a 10% coupon bond for $950. Today you sold the bond for 1,050. What is your rate of return on the bond in the following situations?
(a). All coupons were immediately spent when received
(5) All coupons were reinvested in your bank account which pays 5% until the bond is sold
(c). All coupons were invested in your bank account which pays % until the bond is sold
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