Calculate the interest on coupon interest as percentage

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Reference no: EM131300857

Suppose an investor is considering purchasing a 15-years 10% semi-annualcoupon bond selling for $1000 (at par) in the market. What is YTM of this bond? Can you calculate the interest on coupon interest as a percentage of total dollarsearned, if you assume that the coupon can be reinvested at a rate equal to theYTM?

Reference no: EM131300857

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