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Consider change in price only, do not assume any accrued interest in either the purchase or the sale. Seamus O'Leary wants to sell the $30,000
Consider change in price only, do not assume any accrued interest in either the purchase or the sale.
Seamus O'Leary wants to sell the $30,000 QuadraTech bonds he purchased 3 years ago at par value. The bonds have a 4.5% coupon, 7 years to maturity, and are trading at a 4.95% yield to maturity. If Seamus sells the bonds today, his proceeds from the sale would result in:
A. | a loss of $790.50. | |
B. | a loss of $782.58. | |
C. | a gain of $902.98. |
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