Benjamin buys a 10-year RM1000 par value 6% bond with semi-annual

coupons. The price assumes a nominal yield of 6%, compounded semi- annually. As he receives each coupon payment, he immediately puts the money into an account earning interest at an annual effective rate of i . At the end of 10 years, immediately after Benjamin receives the final coupon payment and the redemption value of the bond, Benjamin has earned an annual effective yield of 7% on his investment in the bond. Calculate i .
If the coupon rate is 6.5%, find the amount of money Benjamin has accumulated at the end of 10 years.