Question
Question 23 Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 6.00% Face Value = $1,000 Annual Coupons
Question 23
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 6.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate 3.50% Immediately after you buy the bond the interest rate changes to 4.50% What is the "reinvestment" effect in year 4 ?
Group of answer choices
$3.91
-$3.91
$3.79
-$3.79
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
11th Edition
0321357965, 978-0321357960
