NO.PZ2016031001000110
问题如下:
An investor purchases a nine-year, 7% annual coupon payment bond at a price equal to par value. After the bond is purchased and before the first coupon is received, interest rates increase to 8%. The investor sells the bond after five years. Assume that interest rates remain unchanged at 8% over the five-year holding period.
Per 100 of par value, the future value of the reinvested coupon payments at the end of the holding period is closest to:
选项:
A.35.00.
B.40.26.
C.41.07.
解释:
C is correct.
The future value of reinvested cash flows at 8% after five years is closest to 41.07per 100 of par value.
= 41.0662
The 6.07 difference between the sum of the coupon payments over the five-year holding period (35) and the future value of the reinvested coupons (41.07) represents the "interest-on interest" gain from compounding.
考点:Source of return
解析: 题目让我们求的是持有到最后的FV。投资者在第五年末将债券卖了出去,对于他来说the end of the holding period就是第五年年末。所以我们这里算的是持有期(5年)中的coupon再投资收入,用到的不是剩余的年限。利用计算器求,那么相当于是求一个第五年年末的FV。N=5,PMT=7,I/Y=8,PV=0,求得FV=41.07,故选项C正确。
请再详细点分解开步骤的含义,谢谢