For each of the bonds and reinvestment rates listed below calculate the amount of money accumulated at the end from a $1000 initial investment:

(a) Invest $1000 in a 5-year zero coupon bond with a yield to maturity of 9 percent.

(b) Buy a 5-year 9% coupon annual pay bond at par ($1000) and reinvest the annual coupons at 9% (annual compounding).

(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 annual holding period return. What can you conclude about the relationship between the reinvestment rate, yield to maturity and holding period returns?