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You decide to invest for 5 years in a 10-year bond. The annual coupon rate of the bond is 10% (making semi-annual coupon payments). The
You decide to invest for 5 years in a 10-year bond. The annual coupon rate of the bond is 10% (making semi-annual coupon payments). The face value of the bond is $5 million. The annual reinvestment return for the coupon payments is 12%. What the aggregate amount of interest on interest of the 5-year investment?
Group of answer choices
795,199
3,295,199
2,522,199
1,421,199
None of the above
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