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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 is the aggregate amount of interest on interest of the 5-year investment?
795.199
3295.199
2522.299
1421.199
None
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