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Suppose i buy a bond today at par (1, 000) and it hold it until its maturity which is 15 years from now. If i
Suppose i buy a bond today at par (1, 000) and it hold it until its maturity which is 15 years from now. If i can earn 4% on a semiannual basis, from the reinvestment of each of the $40 coupons.
1. What will be the total accumulated valueat the end of the 15 years, from my investment?
2. What is the follar portion of the income which is earned from the reinvestment of the coupons (assume no taxes)
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