5. In order to purchase a 1000 par value 10 year bond, yielding an annual nominal rate of 8% compounded semiannually, and paying semiannual coupons at an annual nominal rate of 6%, Janet borrows money...

Extracted text: 5. In order to purchase a 1000 par value 10 year bond, yielding an annual nominal rate of 8% compounded semiannually, and paying semiannual coupons at an annual nominal rate of 6%, Janet borrows money from a bank at an effective annual rate of 5%. She has to pay the amount she has borrowed plus interest in one single payment at the end of 10 years. Janet reinvests all coupon payments she receives in an account that gains interest at a nominal rate of 10% convertible semiannually. At the end of 10 years, how much remains from Janet's investment after she pays all she owes on the loan?