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Swanson, Inc. bonds have a 12% coupon rate with semi-annual coupon payments. They have 15 years to maturity and a par value of $1,000. Your

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Swanson, Inc. bonds have a 12% coupon rate with semi-annual coupon payments. They have 15 years to maturity and a par value of $1,000. Your required rate of return is 14%. Suppose you decide to buy the bond, and immediately afterwards interest rates increase by 10%. How much value has the bond gained or lost? (Hint: find the price of the bond before and after the change in interest rates.) O Loss of $42.36 Gain of $42.36 Loss of $53.07 O Gain of $53.07

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