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problem: For each of the bonds and reinvestment rates listed below compute the amount of money accumulated at the end of 1,000 dollars initial investment:

[A]    Invest $1,000 in a five year zero coupon bond with a yield to maturity of nine percent.

[B]    Buy a 5-year nine percent coupon annual pay bond at par [$1,000] and reinvest the annual coupons at 9 percent [annual compounding].

[C]    Same as (b), but reinvest the annual coupons at 6 percent.

[D]    Same as (b), but reinvest the annual coupons at 12 percent.

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  • Category:- Basic Finance
  • Reference No.:- M916986

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