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Question 39 1 pts Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 7.00% Face Value = $1,000

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Question 39 1 pts Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 7.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 5.00% Immediately after you buy the bond the interest rate changes to 4.50% What is the "reinvestment" effect in year 3? O-$1.12 $1.12 O $1.08 O $1.08

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