You purchased a bond, that pays an 7.00% coupon annually, 9 years ago for $900. Today these

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You purchased a bond, that pays an 7.00% coupon annually, 9 years ago for $900. Today these bonds are selling for $1,150. If you sold the bond today, what is your annual rate of return on the investment if all coupons you received were reinvested in your bank account at 2.30% per annum?

a.9.93%

b.6.62%

c.7.87%

d.9.21%

e.8.28%

Why the answer is A not E.

Posted Date: Oct 12, 2021 04:15 PM

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You purchased a bond, that pays an 7.00% coupon annually, 9 years ago for $900. Today these

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