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19. You purchase a 5-year and 10%-coupon rate bond with face amount of $1,000 at par value. One year later, market interest rate increases from

19. You purchase a 5-year and 10%-coupon rate bond with face amount of $1,000 at par value. One year later, market interest rate increases from 10% to 20%, what is the rate of capital gain for the bond?

(A) -40.3%.

(B) -29.5%.

(C) -25.9%.

(D) -30.3%.

(E) -15.9%

20.Refer to Q19, what is the rate of return for the bond?

(A) -40.3%.

(B) -38.4%.

(C) -25.9%.

(D) -30.3%.

(E) -15.9%.

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