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You bought a 15 year maturity bond with a coupon rate of 10% paid semi-annually. You will sell this bond two years from now. The
You bought a 15 year maturity bond with a coupon rate of 10% paid semi-annually. You will sell this bond two years from now. The reinvestment rates are 10% in year 1 and 8% in year 2 and will remain constant for the remainder of its duration. You sell this bond after two years at a price closer to: a. At discount b. $ 1170 c. $1159 d. Above $1170 e. None of the above
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