Question: Use the bond term's below to answer the question Maturity 5 years Coupon Rate 4% Face value $1,000 Annual Coupons Market Interest Rate 7% Assuming

Use the bond term's below to answer the question Maturity 5 years Coupon Rate 4% Face value $1,000 Annual Coupons Market Interest Rate 7% Assuming the market interest rate remains constant throughout the bond's life, what is percentage capital gains/loss between periods 0 and 1 ?

a. 2.35%

b.2.44%

c.2.51%

d.2.56%

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