问题
单项选择题
Three years ago, at the advice of her financial planner, an investor purchased a $1000 face, 4.50%, semiannual coupon bond with seven years to maturity priced to yield 6.50% for $888.94. The reinvestment income that must be generated over the life of the bond for the investor to realize a yield of 6.5% is closest to:()
A. $72.
B. $76.
C. $80.
答案
参考答案:B
解析:
Semiannual compound rate is 0.065/2=0.0325. Ending value must be $888.94×(1.0325)14=$1391.02. The sum of the coupon payments is 1000×2.25%×14=315. So, the reinvestment income is $1391.02-$1000-$315=$76.