A $5000, 7% coupon, 20-year bond issued on January 21, 2006, was purchased on January 25, 2007,
Question:
A $5000, 7% coupon, 20-year bond issued on January 21, 2006, was purchased on January 25, 2007, to yield 6.5% to maturity, and then sold on January 13, 2008, to yield the purchaser 5.2% to maturity. What was the investor’s capital gain or loss: a. In dollars? b. As a percentage of her original investment?
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Given FV 5000 Maturity date January 21 2026 On the date of purchaseJan 25 2007 On the date of sale J...View the full answer
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Somshukla Chakraborty
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