Question: Use the bond term's below to answer the question Maturity 7 years Coupon Rate 3% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming

Use the bond term's below to answer the question Maturity 7

Use the bond term's below to answer the question Maturity 7 years Coupon Rate 3% Face value $1,000 Annual Coupons Market Interest Rate 6% Assuming the YTM remains constant throughout the bond's life, what is percentage capital gains/loss between periods 3 and 4? 2.73% 0 2.65% 2.55% 2.78%

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