Five years ago, John bought the annualcoupon bond of XYZ The coupon rate

is Five years ago, the yieldtomaturity of XYZ was and the years to

maturity of the bond was years. John has already held it for five years as of

today and he is selling XYZ bond today. He reinvested the coupon at the rate of

per year over the past five years. The current yieldtomaturity is Par

value is $

What is the geometric rate of return of the investment?

Initial Investment I

FV from coupon reinvestments

Price of bond five years later

Total ending value EV

Rg