Interest rate risk impacts bonds in 2 ways First reinvestment rate may be lower than anticipated Bond has 5 years to maturity; the coupon is 7% per annum (SA) YTM is 8% per annum; FV is 1000 While buying the expectation is that all coupons can be reinvested till the end at the YTM But actual reinvestment happened only at 6.4% per annum . 1. What is the ROR if the bond is held till maturity and coupons are reinvested at 8% 

2. what is the ROR if the bond is held till maturity and the coupons are reinvested at 6.4%