4.

Bond A has the following features:

Face value = $1,000,

Coupon Rate = 5%,

Maturity = 8 years, Yearly coupons

The market interest rate is 6.23%

If interest rates remain at 6.23%, what is the percentage capital gain or loss on bond A if you sell the bond in year 1?

State your answer to 2 decimal places (e.g., 3.56, 0.29)

If there is a capital loss make sure to include a negative sign in your answer (e.g., -0.23)