At a semiannual interest rate of 3%, the bond is worth $40 Annuity factor(3%, 60) $1,000 PV

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At a semiannual interest rate of 3%, the bond is worth $40 Annuity factor(3%, 60)

$1,000 PV factor(3%, 60) $1,276.76, which results in a capital gain of $276.76. This exceeds the capital loss of $189.29 ($1,000 $810.71) when the interest rate increased to 5%.

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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Question Posted: Jul 26, 2024 11:03 AM

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At a semiannual interest rate of 3%, the bond is worth $40 Annuity factor(3%, 60) $1,000 PV

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Essentials Of Investments

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