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Mary buys a 30 year bond with par value 50,000 with coupons at 9% convertible semi-annually. The bond is purchased to yield 8%, compounded semi-annually.

Mary buys a 30 year bond with par value 50,000 with coupons at 9% convertible semi-annually. The bond is purchased to yield 8%, compounded semi-annually. 10 years later the market value of the bond is estimated based on a 7% interest rate, compounded semi-annually. Calculate the unrealized capital gain.

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