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Yumeko purchased a 10 year 5% coupon bond that pays semiannualy. At the time of purchase the bond had a yield of 7%. After owning
Yumeko purchased a 10 year 5% coupon bond that pays semiannualy. At the time of purchase the bond had a yield of 7%. After owning the bond for 1 year, interest rates dropped significantly to where the bond will yield 6% and she decides to sell it. What is the amount of capital gains Yumeko realized by selling the bond after 1 year? SHOW WORK
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