Question: A $1,000 par value bond was issued five years ago at a 10 percent coupon rate. It currently has 25 years remaining to maturity. Interest
A $1,000 par value bond was issued five years ago at a 10 percent coupon rate. It currently has 25 years remaining to maturity. Interest rates on similar debt obligations are now 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. Compute the current price of the bond using an assumption of semiannual payments. Note: Do not round intermediate calculations and round your answer to 2 decimal places. If Mr. Robinson initially bought the bond at par value, what is his percentage capital gain or loss? Note: Ignore any interest income received. Do not round intermediate calculations and round your
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