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Five years ago you purchased an 8% coupon bond for $975. Today you sold the bond for $1.000. (Round your answers to 2 decimal places.)
Five years ago you purchased an 8% coupon bond for $975. Today you sold the bond for $1.000. (Round your answers to 2 decimal places.) a. What is your rate of return if all coupons were immediately spent when received? Bond's rate of return 8.64 % b. What is your rate of return if all coupons were reinvested in your bank account, which pays 1% interest until the bond is sold? Bond's rate of return 7.63 c. What is your rate of return if all coupons were reinvested at 8.54% until the bond is sold? Bond's rate of return 8.64
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