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Question 2: 20 marks An investor owned a 9 percent annual payment coupon bond for six years that was originally purchased at a 9 percent

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Question 2: 20 marks An investor owned a 9 percent annual payment coupon bond for six years that was originally purchased at a 9 percent required return. She did not reinvest any coupons, she redeemed the bond at par a) What was her annual realized rate of return? (5 marks) b) What if she did reinvest the coupons but only earned 5 percent on each coupon? Why are your answers not equal to 9 percent? (15 marks)

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