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Assume that all interest rates are certain - all investors know how interest rates will change over time. Two years ago, you purchased a 10-year bond with a face value of \\( \\$ 1,000.00 \\) and annual coupons of \8.0. When you purchased the bond, the one year spot rate was \6.7 and the two year spot rate was \9.7. You reinvested the first coupon payments at the prevailing rate and then sold the bond after two years at a yield to maturity of \13.2. If your realised compound yield on the bond was \11.0, what was the bond's initial purchase price? a. \\( \\$ 748.00 \\) b. \\( \\$ 752.88 \\) c. \\( \\$ 748.63 \\) d. \\( \\$ 750.70 \\) e. \\( \\$ 758.94 \\) f. \\( \\$ 755.10 \\) g. \\( \\$ 757.19 \\) h. \\( \\$ 760.66 \\) Assume that all interest rates are certain - all investors know how interest rates will change over time. Two years ago, you purchased a 10-year bond with a face value of \\( \\$ 1,000.00 \\) and annual coupons of \8.0. When you purchased the bond, the one year spot rate was \6.7 and the two year spot rate was \9.7. You reinvested the first coupon payments at the prevailing rate and then sold the bond after two years at a yield to maturity of \13.2. If your realised compound yield on the bond was \11.0, what was the bond's initial purchase price? a. \\( \\$ 748.00 \\) b. \\( \\$ 752.88 \\) c. \\( \\$ 748.63 \\) d. \\( \\$ 750.70 \\) e. \\( \\$ 758.94 \\) f. \\( \\$ 755.10 \\) g. \\( \\$ 757.19 \\) h. \\( \\$ 760.66 \\)

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