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Determine the amount once the bond reach maturity

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Reference no: EM132622351

Consider an annual coupon bond with a face value of $100, 13 years to maturity, and a price of $81. The coupon rate on the bond is 6%. If you can reinvest coupons at a rate of 3/5% per annum, then how much money do you have if you hold the bond to maturity?

How do you determine the amount once the bond reach maturity?

Reference no: EM132622351

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