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. For each of the bonds and reinvestment rates listed below calculate the amount of money accumulated at the end from a $1000 initial investment.
. For each of the bonds and reinvestment rates listed below calculate the amount of money accumulated at the end from a $1000 initial investment. Assume annual compounding (a) Invest $1000 in a 5-year zero coupon bond with a yield to maturity of 9 percent. (b) Buy a 5-year 9% annual coupon bond at par ($1000) and reinvest the annual coupons at 9%. (c) Same as (b) but reinvest the annual coupons at 12%. (d) Same as (b) but reinvest the annual coupons at 6%. (e) For (a) through (d) calculate the holding period return. What can you conclude about the relationship between yield to maturity and holding period return
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