Question: Five years ago Nick bought a bond for its face value of $25000. The bond has a 5.4% coupon which is paid quarterly. Today with

Five years ago Nick bought a bond for its face value of $25000. The bond has a 5.4% coupon which is paid quarterly. Today with yield rates at 7% compounded quarterly, he wants to sell it with 3 years before maturity. What would be Nicks profit or loss?

A) $4698.55 profit

B) $4698.55 loss

C) $1073.95 loss

D) $1073.95 profit

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