Question
An investor bought a 20-year bond at par with a semiannual coupon and a 3% yield-to-maturity. One year later, due to a decline in interest
An investor bought a 20-year bond at par with a semiannual coupon and a 3% yield-to-maturity. One year later, due to a decline in interest rates, she sold the bond at a 2% yield to maturity. What was her capital gain or loss?
15.7%
8.6%
18.7%
16.4%
14.3%
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Corporate Finance Core Principles and Applications
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford
3rd edition
978-0077971304, 77971302, 978-0073530680, 73530689, 978-0071221160, 71221166, 978-0077905200
