Question: Basic Valuations A few years ago, you purchased White Ltd Bond at a price of R9 120. The bond has a face value of R9

Basic Valuations

A few years ago, you purchased White Ltd Bond at a price of R9 120. The bond has a face value of R9 000, and it pays a coupon of 12% per annum. The coupons are paid on the 30^th of June and the 30^th of December every year. As of today, the bond is now left with 19 coupons to maturity and it is trading at a yield to maturity of 10%.

a) If you sell the bond today, how much will be your capital gain or loss?

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