You purchase a 7 percent $1,000 bond with a term of ten years and reinvest all interest

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You purchase a 7 percent $1,000 bond with a term of ten years and reinvest all interest payments. If interest rates rise to 10 percent after you purchase the bond, what is the return on your investment in the bond?

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Investments An Introduction

ISBN: 978-0324561388

9th Edition

Authors: Herbert B Mayo

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Question Posted: Jun 26, 2012 07:29 AM

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You purchase a 7 percent $1,000 bond with a term of ten years and reinvest all interest

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If interest rates rise to 10 percent the 70 grows to 7015937 111559 N 10 I 10 PV 0 PMT 70 F...View the full answer

Investments An Introduction

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