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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)
Use XXX.XX format. For example, the value is 79.85 or 104.16.
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