Practice Question $4.$

Mr Ali has purchased CBO bonds for $$950$ having a FV $$1,000$ today @ coupon $5\%$ p$.$a$.$ having a

maturity of $7$ years. At the end of year $4,$ Mr Ali sold these government bonds. The YTM rates

were as follows

Year YTM rates

$1$ YTM of year $0+3\%$

$2$ YTM of year $0+2\%$

$3$ YTM of year $0+4\%$

$4$ YTM of year $0+1\%$

$5$ YTM of year $0+3\%$

Calculate the net gain $/$ loss of Mr Ali.