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ABC company issued a new bond on January 1, 2018 which has an annual coupon rate of 9 percent, a par value of 1,000 dollar,
ABC company issued a new bond on January 1, 2018 which has an annual coupon rate of 9 percent, a par value of 1,000 dollar, and a maturity of 6 years. Coupon payments are made semi-annually (i.e., on June 30 th and December 31 st of each year). What was the percentage capital gain (or loss) on this bond on July 1, 2021 when the yield-to-maturity (YTM) on it was 8 percent (annually):
-3.258 percent
+3.258 percent
-0.804 percent
+8.804 percent
-2.408 percent
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