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A $2,500 bond had a coupon rate of 4.80% with interest paid semi-annually. Angela purchased this bond when there were 8 years left to maturity
A $2,500 bond had a coupon rate of 4.80% with interest paid semi-annually. Angela purchased this bond when there were 8 years left to maturity and when the market interest rate was 7.50% compounded semi-annually. She held the bond for 4 years, then sold it when the market interest rate was 3.90% compounded semi-annually. Calculate her gain or loss on this investment. a. $189.08 b. $754.94 c. $483.21 d. -$271.73
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