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A $7,000, 9% coupon bond redeemable at par with semi-annual coupons bought twelve years before maturity to yield 5% compounded semi-annually is sold five years
A $7,000, 9% coupon bond redeemable at par with semi-annual coupons bought twelve years before maturity to yield 5% compounded semi-annually is sold five years before maturity at 99.125 per $100 of face value. Find the simple gain or loss on the sale of the bond (i.e. Price sold - Price bought, ignoring any coupons received)
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