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Assume an investor buys a newly issued 8 percent, semiannual 10 year bond at par. He sells it two years later when market interest rates
Assume an investor buys a newly issued 8 percent, semiannual 10 year bond at par. He sells it two years later when market interest rates have decreased to 6 percent. How much is the investors capital gain or loss?
$147.20 gain
$70.20 gain
$125.61 gain
$124.20 loss
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