Question: Bond maturity 4 Years initial interest rate = 3.00% Coupon Rate 7.00% Annual Coupon Face Value $1,000.00 Dollar Coupons $70.00 Given the information in the

Bond maturity 4

Years initial interest rate = 3.00%

Coupon Rate 7.00%

Annual Coupon Face Value $1,000.00

Dollar Coupons $70.00

Given the information in the table, what is the reinvestment effect in year 3 if the interest rate changes from 3.00% to 4.00% ?

$2.17
$2.15
$2.36
$2.11

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