Assume an investor buys a newly issued 0.05 percent, annual 8 year bond at par. He sells it 3 years later, when market interest rates have changed to 0.06 percent. How much is the investor's capital gain or loss in $? Your Answer: Answer Hide hint for Question 14 Bond price at beginning $1000 since it is issued at par. Bond price 3 years later, using financial calculator n= initial years to mature -3 1/Y= yield to maturity 3 years later PMT= coupon rate 1000 FV=1000 CPT(compute) PV gain or loss= computed PV- 1000