Question: You just bought a 2 0 - year bond that has just been issued and pays an annual coupon of $ 8 0 , has

You just bought a 20-year bond that has just been issued and pays an annual coupon of $80, has a face value (par) of $1,000, and has a yield to maturity of 7%. Suppose you expect to reinvest the coupon payments at 6% annually for the next five At the end of year 5, the yield to maturity is expected to be 9%. What is the expected ending value of your investment at the end of year 5? Answer all of the followings:
FV coupon reinvestment =
Selling price at end of year 5=
EV =

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