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An investor buys a 5% coupon bond that has a twenty-year life, $100 redemption value, and 8% required rate of return. After four years, the
An investor buys a 5% coupon bond that has a twenty-year life, $100 redemption value, and 8% required rate of return. After four years, the required rate of return has decreased to 7% and the investor sells the bond. The investor calculates the purchase price, carrying value, and selling price. What was the investors capital gain when selling the bond? (Dollars, x.xx)
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