Per 100 of par value, the future value of the reinvested coupon payments at the end of the holding period is closest to:

A. 35.00.

B. 40.26.

C. 41.07.

An investor purchases a nine-year, 7% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase to 8%. The investor sells the bond after five years. Assume that interest rates remain unchanged at 8% over the five-year holding period.