Zero-coupon treasury (STRIP) Yield to Maturity

1 YEAR 4%

2 YEAR 5%

3 YEAR 7%

4 YEAR 9%

Given the information in this table, calculate your profit or loss if you bought a4-year bond today and sold it in 2 years. Assume the par value of the bond is $1,000."

A. Gain of $180.00

B. Gain of $50.50

C. Gain of $72.64

D. Loss of $40.25 loss