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Question
Assume an investor buys a newly issued 8 percent, semi-annual 10 year bond at par. He sells it two years later, when market interest rates have decreased to 6 percent. How much is the investor's capital gain or loss?a) $1,000 gain
b) $1,125.44 gain
c) $125.44 gain
d) $377.00 loss
Answer
This answer is hidden. It contains 594 characters.
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