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Author Question: Consider a 35 year coupon bond with a face value of $1,000 that pays $80 annual coupons (beginning ... (Read 86 times)

leo leo

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Question 1

Consider a 35 year coupon bond that pays $80 annual coupons (beginning one year from today). What is the future value of the coupons at maturity if you can invest them at 8%?
◦ $13,785.34
◦ $16,214.36
◦ $8,496.24
◦ $14,100.34
◦ $3,495.30

Question 2

Consider a 35 year coupon bond with a face value of $1,000 that pays $80 annual coupons (beginning one year from today). Assume that you invest each coupon in a bank that pays 8% interest. By the maturity date of the bond, how much interest have you earned by investing the coupons? Express your answer as a proportion of all of the money that you have received from owning the bond by the maturity date.
◦ 54%
◦ 59%
◦ 64%
◦ 69%
◦ 74%


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Marked as best answer by leo leo on Apr 25, 2021

jomama

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Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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leo leo

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Reply 2 on: Apr 25, 2021
Great answer, keep it coming :)


parker125

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Reply 3 on: Yesterday
Wow, this really help

 

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