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Stephanie purchased a corporate bond that matures in 10 years. The bond has par value of $1,000 and an annual coupon of $150. The annual
Stephanie purchased a corporate bond that matures in 10 years. The bond has par value of $1,000 and an annual coupon of $150. The annual interest rates today are 7 percent. If four years later the annual market interest rates decrease to 2 percent and Stephanie sells the bond, her capital gain (ignoring the coupons Stephanie received) from holding the bond will be _____.
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