How much coupon reinvestment income must be generated

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Reference no: EM131599539

An investor purchases an 8-year 5% coupon bond that pays coupons semiannually and has a par value of $100. The bond is currently priced at $93.7194, representing a yield to maturity of 6%. The investor plans to hold the bond until maturity. In order to actually realize the bond’s yield to maturity of 6%, how much coupon reinvestment income (in dollars) must be generated over the life of the bond?

Reference no: EM131599539

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