You tell your broker you want to buy a 20-year government bond. He has one for sale that pays a 5% coupon. The going rate for a typical 20-year Treasury is 7.5%. Assume a Par Value of $100. Shortly after you buy the bond, the YTM on 20-year bonds rose to 9.5%.

How much money did you lose?

$24.92

$14.17

$14.28