Calculate the interest on interest from the bond

Reference no: EM13514791

3. An investor is considering the purchase of a 10-year 8% coupon bond selling for $934.96 and a par value of $1,000. The yield to maturity for this bond is 9%. Calculate the interest on interest from the bond assuming that the semiannual coupon payments can be reinvested at 4.5% every six months

Reference no: EM13514791

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