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Seven years ago, Embraer issued a semi-annual coupon bond with 12 years to maturity. The bond was originally issued at par with a $1000 face
Seven years ago, Embraer issued a semi-annual coupon bond with 12 years to maturity. The bond was originally issued at par with a $1000 face value. The coupon rate on the bond is 7.5% and the yield to maturity is currently 7% (for all maturities). Assume an investor bought the bond when it was issued seven years ago and sells the bond today. What would the investors capital gain or loss (in %) for the complete investing period.
The 7-year capital gain or loss in percentage terms is ?
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