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A $1,500 bond had a coupon rate of 5.40% with interest paid semi-annually. Andrew purchased this bond when there were 9 years left to maturity
A $1,500 bond had a coupon rate of 5.40% with interest paid semi-annually. Andrew purchased this bond when there were 9 years left to maturity and when the market interest rate was 7.30% compounded semi-annually. He held the bond for 4 years, then sold it when the market interest rate was 3.20% compounded semi-annually. Calculate his gain or loss on this investment
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