Faber Overdrive Autoparts issued at par value a 15-year 6% semiannual coupon bond, face value $1,000. At

Question:

Faber Overdrive Autoparts issued at a 15-year 6% semiannual bond, $1,000. At the end of 2 years the market yield increased to 7%. One year later, the market yield was 8%. If you purchased the bond at the end of Year 2 and sold it one year later, how much was your capital gain or loss?
Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Par Value
Par value is the face value of a bond. Par value is important for a bond or fixed-income instrument because it determines its maturity value as well as the dollar value of coupon payments. The market price of a bond may be above or below par,...