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The city of Worcester just issued a 20-year bond with a face value of $1,000. The bond has a coupon rate of 10% and pays

  1. The city of Worcester just issued a 20-year bond with a face value of $1,000. The bond has a coupon rate of 10% and pays semi-annual coupons. Today the yield to maturity (YTM) of this bond is 10%. What will an investors capital gain be if the bonds YTM increases to 20% after one year?

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