USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider two bonds, both pay semiannual interest. Bond A has a coupon of 8 percent per year, maturity of 30 years, yield to maturity of 9 percent per year, and a face value of $1000. Bond B has a coupon of 8 percent per year, maturity of 30 years, yield to maturity of 9.5 percent per year, and a face value of $1000.
-Refer to Exhibit 13.10. Calculate the percentage gain per invested dollar for Bond A assuming a one-year horizon, and a reinvestment rate of 9 percent per year.

A) 9.73%
B) 9.93 percent
C) 9.20 percent
D) 8.20 percent
E) 9.50 percent