Question: NO EXCEL Problem 5. Amy buys a 10-year $ 10,000 par value bond with 10% semiannual coupons. During the first five years, the coupons are

NO EXCEL Problem 5. Amy buys a 10-year $ 10,000 par

NO EXCEL

Problem 5. Amy buys a 10-year $ 10,000 par value bond with 10% semiannual coupons. During the first five years, the coupons are reinvested into a fund A which earns 5% annual effective interest rate over the whole 10-year period. In the second five years, the coupons are reinvested into a fund B which earns 9% annual effective rate. a Find the total value in bond, fund A and fund B at the end of 10 years. b Find the overall annual yield rate earned by Amy

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