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Assume a shareholder buys an 8%, semi-annual, 10-year bond for $1,000. He sells it two years later after market interest rates have gone down to

Assume a shareholder buys an 8%, semi-annual, 10-year bond for $1,000. He sells it two years later after market interest rates have gone down to 6 percent. The shareholders capital gain is closest to:

Question 13 options:

a)

$41.

b)

$124.

c)

$126.

d)

$149.

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