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Suppose you purchase a 7-year, 6% semi-annual coupon bond for 91.136. You plan to hold the bond until it matures and reinvest all coupons at

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Suppose you purchase a 7-year, 6% semi-annual coupon bond for 91.136. You plan to hold the bond until it matures and reinvest all coupons at the prevailing yield for bonds of this risk level. Immediately after you purchase the bond, the yield for equivalently risk bonds decreases by 100 basis points. What will be your return on this investment in this scenario? Round your answer to the decimal places. O 9.78 O 8.32 O 4.85 7.48 0 3.65 Suppose you purchase a 7-year, 6% semi-annual coupon bond for 91.136. If the yield remains constant and you reinvest the coupons you receive at that yield, what will be the value of those coupons when the bond matures in 7 years? Round your answer to three decimal places. 154.34 O 87.43 O 54.24 O 65.34 45.43

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