answer C

Problem 16-16 (Algo) Loss exposure and profit potential [LO 16-2] A $1,000 par value bond was issued five years ago at a 6 percent coupon rate. It currently has 7 years remaining to maturity. Interest rates on similar debt obligations are now 8 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods. a. 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: b. 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 answer to 2 decimal places. 2. Now assume Mrs. Pinson buys the bond at its current market value and holds it to maturity, what will be her percentage capital gain or loss? Note: Ignore any interest income received. Do not round intelinediate calculations and round your answer to 2 decimal places. Answer is complete but not entirely correct