Reinvesting the coupon payments

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Reference no: EM131444522

You bought EMU bond: 5-year, coupon= 12%, paid semi-annually, par= $1,000, and YTM = 8%

You sold the bond at the end of 4-years. You have also been reinvesting the coupon payments all along at the same 8% YTM rate. What is your wealth at the end of 4-years?

Reference no: EM131444522

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