QUESTION 20

1. Which of the following statements is true?

	a.	There is a capital gain when a bond is sold at a price below its constant-yield price trajectory and capital loss when a bond is sold at a price above its constant-yield price trajectory.
	b.	There is a capital gain when a bond is sold at a price above its constant-yield price trajectory and capital loss when a bond is sold at a price below its constant-yield price trajectory.
	c.	There is a capital gain when a bond is sold at a price below its constant-yield price trajectory and capital loss when a bond is sold at a price at its constant-yield price trajectory.