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  3. a sappi bond pays a coupon of 10% per annum but th

A Sappi bond pays a coupon of 10% per annum but the coupons are paid...

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Accounting

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A Sappi bond pays a coupon of 10% per annum but the coupons are paid once a year. The bond matures after 3-years from today (21st February 2022). In the table below you are presented with current and expected 1- year interest rates. Based on these interest rates, determine the income that you will generate from reinvesting all the coupons that you will receive from this bond. Period Interest rate (%) 4% 213 February 2022 to 215 February 2023 5% 21st February 2023 to 215 February 2024 21st February 2024 to 215 February 2025 8% O A. R21.40 O B.R325.94 O C. R25.94 O D. R321.40

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