Question
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?
a. $147.20 gain
b. $70.20 gain
c. $125.61 gain
d. $124.20 loss
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Foundations In Personal Finance
Authors: Dave Ramsey
3rd Edition
1936948524, 978-1936948529
