Wojtek purchased a $10,000 face value strip bond on a date when it had 14 years left

Question:

Wojtek purchased a $10,000 face value strip bond on a date when it had 14 years left until maturity. The purchase price was based on a market yield of 6.2% compounded semiannually. He sold the bond 4 1/2 years later when the market yield was 5.2% 2 compounded semiannually. What was Wojtek’s total gain on the investment? (Taken from CIFP course materials.)
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: