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New Edge Inc., a company specializing in precision technology specific to the agricultural industry, has a par value bond issued five years ago at a

New Edge Inc., a company specializing in precision technology specific to the agricultural industry, has a par value bond issued five years ago at a 9 percent coupon rate. It currently has 20 years remaining to maturity. Interest rates on similar debt obligations are now 11.5 percent.
A. Compute the current price of the bod. Assume semi-annual payments.
B. If you bought the bond five years ago, based on today's price, what is your capital gain or loss percentage?
C. In a different scenario, assume your friend buys a New Edge bond today and holds it until maturity. What will be your friend's capital gain or loss?
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