Question: Use the bond term's below to answer the question Maturity 12 years Coupon Rate 5% Face value $1,000 Annual Coupons Market Interest Rate 7% Assuming

Use the bond term's below to answer the question Maturity 12 years Coupon Rate 5% Face value $1,000 Annual Coupons Market Interest Rate 7% Assuming the YTM remains constant throughout the bond's life, what is percentage capital gains/loss between periods 3 and 4 ?

A. 1.20%

B. 1.29%

C. 1.31%

D. 1.25%

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