Face Value
Coupon Rate
Maturity
Years to maturity
Rate of return
Future Value
Payment
Present Value
$48,000,000
4.5%
1997
5
10%
$1,000
$45
$791.51
$32,000,000
8.25%
2007
15
10%
$1,000
$82.50
$866.89
$100,000,000
12.625%
2017
25
10%
$1,000
$126.25
$$1238.27
Assume that you plan to keep your money invested, and to
reinvest all interest receipts, for five years. Assume further that
you bought the 5-year bond for $800, and interest rates suddenly
fell to 5 percent and remained at that...