Question: Compute the total dollar return earned from a bond's coupon interest and the reinvestment of coupons from issue date to end of period 3. Term
Compute the total dollar return earned from a bond's coupon interest and the reinvestment of coupons from issue date to end of period 3.
Term to Maturity: 2 years
Par Value: $1,000
Coupon Rate: 7.30%
Yield to Maturity remains at 7.30% for the entire length of the bond maturity (2 years)
The bond pays semi-annual coupon payments
| $39.21 |
|
| $113.55 |
|
| $37.83 |
|
| $109.50 |
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