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3- Suppose that a portfolio management company manages an investment fund. The fund manager observes a bond in the market and intends to add it
3- Suppose that a portfolio management company manages an investment fund. The fund manager observes a bond in the market and intends to add it to the fund portfolio. The bond has a 100.000 TL par value, 10% coupon rate (coupon payments are annual) and a 2-years maturity. The business model is to "hold- until-maturity". The company purchases the bond at the beginning of the year when the market yields are 12%. After exactly 1 year of investment, market yields increase to 14%. What would be the approximate profit or loss amount in the income statement for that 1-year period? 1.723 TL loss 10.191 TL profit 9.871 TL profit 1.594 TL loss Dier
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