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just need to know how to grt these answers! The following information is for Questions 20-21. An investor purchases a nine-year, 7% annual coupon payment
just need to know how to grt these answers!
The following information is for Questions 20-21. An investor purchases a nine-year, 7% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase to 8%. The investor sells the bond after five years. Assume that par value is $100 What is the future value of the reinvested coupon payments at the end of the holding period? 35.00 40.26 41.07 44.58 46.00 Question 21 The following information is for Questions 20-21. An investor purchases a nine-year. 7% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase to 8%. The investor sells the bond after five years. Assume that par value is $100 What is the investor's five-year horizon yield? 5.66%6.62%7.12%7.95%8.25% Step by Step Solution
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