Question: Use the bond term's below to answer the question Maturity 6 years Coupon Rate 3% Face value $1,000 Annual Coupons Market Interest Rate 5% Assuming

Use the bond term's below to answer the question

Maturity 6 years

Coupon Rate 3%

Face value $1,000

Annual Coupons

Market Interest Rate 5%

Assuming the YTM remains constant throughout the bond's life, what is percentage capital gains/loss between periods 3 and 4?

1.76%

1.88%

1.92%

1.83%

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