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Question 8 1 pts Assume you buy a bond with the following features Bond maturity - 4 Coupon Rate = 6.00% Face Value = $1,000

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Question 8 1 pts 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 - 6.00% Immediately after you buy the bond the interest rate changes to 7.00% What is the "reinvestment" effect in year 3 ? -$1.93 $1.88 $1.88 $1.93

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