Question: Two years ago Juan bought a 7 % five - year - old bond today the interest rate on newly issued comparable bonds is 9

Two years ago Juan bought a

7 %

five

-

year

-

old bond today the interest rate on newly issued comparable bonds is

9 %

if one sells his one today he most likely will realize the capital gain on the bond will realize the capital loss on the bond will sell the bond for an amount equal to the face value will receive an amount equal to the power value

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