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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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