You tell your broker you want to buy a 20-year government bond. He has one for sale that pays a 5% coupon. The going rate for a typical 20-year Treasury is 7.5%. Assume a Par Value of $100. Shortly after you buy the bond, the YTM on 20-year bonds rose to 9.5%.

 How much money did you lose?

 a. $14.28

 b. $24.92

 c. $14.17

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