Suppose you buy a 25-year, 6% coupon bond when its YTM is 6.65% and you plan to hold it for 3 years. You forecast that the YTM will be 7% when it is sold and the reinvestment rate on coupon payment will be 4%. Question 29 (1 point) How much do you pay to buy the bond and how much can you sell it for after 3 years? O $921.80 and $889.39 $887.21 and $899.88 $988.10 and $884.65 $1,020.12 and $899.55 Question 30 (1 point) What is the total value of your coupon payments at the end of 3 years with reinvestment rate of 4%? And what is your realized return over 3 years of investment?
