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On the day it was issued, Aaron bought a 30-year, $1,000 strip bond at a market rate of 6% compounded semiannually. Four years later he
On the day it was issued, Aaron bought a 30-year, $1,000 strip bond at a market rate of 6% compounded semiannually. Four years later he sold it to Zevon at the market rate of 7% compounded semiannually. What was Aaron's profit or loss?
A. ($6.91) Loss B. ($2.58) Loss C. $0.00 D. $2.58 Profit E. $6.91 Profit
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