17-1 Consider a 6 percent 10-year bond purchased at face
value($1000). Assuming a reinvestment rate of...
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Finance
17-1 Consider a 6 percent 10-year bond purchased at facevalue($1000). Assuming a reinvestment rate of 5 percent,calculate
The interest on interest =
the total dollar return =
the realized compound yield =
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Yearly coupon interest 1000 6 60the same amount will received from the bond for 10 years Hencethe total coupon rate for 10 years 60 10 years 600Each years coupon rate is reinvested for an interest of
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