Marks Goldsmith's broker has shown how bonds issued by different companies. Each has a maturity of 5 years, a par value of $1,000, and a yield to maturity of 7.5%. The first bond is issued by Crabbe Waste Disposal Corporation and has a coupon rate of 6.325% paid annually. The second bond issued by Malfoy enterprises,has a coupon rate 8.8% paid annually.

d) Assume that Mark will reinvest all the interest he receives as it is paid, and his rate of return on reinvested interest would will be 10% . Calculate the total dollars that Mark will accumulate over 5 years if he invest in Crabbe bonds and Malfoy bonds. Your total dollar calculation will include the interest Mark gets, the principal he receives when the bonds mature, and all the additional interest he earns from reinvesting the coupon payments that he receives.

I already have the answer for part a, b, c but im not confident with my answer for part D . So I just want to see how you answer the part D.

this is my answer but im not confident

Crabbe= $8,109,10 + $21,000

= $29,109.10

Malfoy= $10,207.73 + $19,000

= $29,207.73

The answer for a,b,c :

a)bonds selling price

Crabbe=$952.46

Malfoy= $1,052.60

b)number of bonds could Mark buy if he invest $20,000

Crabbe=21 bonds

Malfoy=19 bonds

c) total interest income

Crabbe=$1,328.25

Malfoy=$1,672