You decide to invest for 5 years in a 10-year bond. The annual coupon rate of the

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You decide to invest for 5 years in a 10-year bond. The annual coupon rate of the bond is 10% (making semi-annual coupon payments). The face value of the bond is $5 million. The annual reinvestment return for the coupon payments is 12%. What is the aggregate amount of interest on interest of the 5-year investment?

795.199

3295.199

2522.299

1421.199

None

Posted Date: Dec 08, 2021 12:13 PM

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You decide to invest for 5 years in a 10-year bond. The annual coupon rate of the

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