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You own a 9% coupon bond with 8 years remaining maturity, that you plan on holding for 3 years and then selling in the market
You own a 9% coupon bond with 8 years remaining maturity, that you plan on holding for 3 years and then selling in the market at that time. If your promised yield at purchase was 8%, and your holding period yield turned out to be 5%, what is the capital gain (or loss) on your bond investment over the course of the holding period? $58.26 capital gain $65.90 capital loss $160.73 capital gain $118.45 capital loss O $149.22 capital loss
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