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Suppose you purchase $15 million par value of a 12-year bond that promises to pay 7.5% interest per year. You plan to invest these annual

Suppose you purchase $15 million par value of a 12-year bond that promises to pay 7.5% interest per year. You plan to invest these annual payments at an annual interest rate of 5%. The interest on interest is equal to __________

Select one:

a. 4,406,767

b. 14,862,790

c. 5,103,286

d. 17,729,069

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