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An investor bought a $8,500 bond with a coupon rate of 5.6% compounded semi-annually. At the time of purchase, the bond had a yield rate
An investor bought a $8,500 bond with a coupon rate of 5.6% compounded semi-annually. At the time of purchase, the bond had a yield rate of 4.8% and nine years until maturity. Three years later, the investor sold the bond when the yield to maturity was 5.9%.
a. At what price did the investor purchase the bond?
b. At what price did the investor sell the bond?
c. What was the investor's capital gain or loss on the investment?
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