Question: Bond maturity = 4 Years initial interest rate =4.00% Coupon Rate= 5.00% Annual Coupon Face Value = $1,000.00 Dollar Coupons= $50.00 Given the information in

Bond maturity = 4 Years

initial interest rate =4.00%

Coupon Rate= 5.00%

Annual Coupon Face Value = $1,000.00

Dollar Coupons= $50.00

Given the information in the table, what is the reinvestment effect in year 4

if the interest rate changes from 4.00% to 6.00% ?

Group of answer choices

$6.41

$6.28

$7.05

$6.47

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