If you can reinvest coupons at a rate of 4 per annul then


Consider an annual coupon bond with a face value of $100, 13 years to maturity, and a price of $77. The coupon rate on the bond is 8%. If you can reinvest coupons at a rate of 4% per annum, then how much money do you have if you hold the bond to maturity?

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Financial Management: If you can reinvest coupons at a rate of 4 per annul then
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