The second investor buys the 10-year bond at 85.503075 and sells it in four years. After the

Question:

The second investor buys the 10-year bond at 85.503075 and sells it in four years. After the bond is purchased, interest rates go down to 9.40%. The future value of the reinvested coupons at 9.40% is 36.801397 per 100 of par value. [8x (1.0940)] + [8 (1.0940)] + [8 (1.0940)] +8= 36.801397 x