Assume an investor buys a newly issued coupon rate of 5 percent, semi-annual 18 year bond...
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Assume an investor buys a newly issued coupon rate of 5 percent, semi-annual 18 year bond at par. He sells it two years later, when market interest rates change to 6 percent. How much is the investor's capital gain or loss? (please use or round to 2 decimal places, for example, if your answer is -$78.801, which indicates loss, enter -78.80; if your answer is $100, which indicate gain, enter 100.00) Assume an investor buys a newly issued coupon rate of 5 percent, semi-annual 18 year bond at par. He sells it two years later, when market interest rates change to 6 percent. How much is the investor's capital gain or loss? (please use or round to 2 decimal places, for example, if your answer is -$78.801, which indicates loss, enter -78.80; if your answer is $100, which indicate gain, enter 100.00)
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Purchase price of bond par value as the yield and interest rate is same purcha... View the full answer
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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