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  3. you buy a bond with the following features: 9 year

You buy a bond with the following features: 9 years to maturity, face value of $1000,...

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Finance

You buy a bond with the following features: 9 years to maturity,face value of $1000, coupon rate of 2% (annual coupons) and yieldto maturity of 2.5%. Just after you purchase the bond, the yield tomaturity rises to 4.9%. What is the capital gain or loss on yourbond?

If the answer is a capital gain just enter the number. Forexample 581.65

If the answer is a capital loss enter a negative number. Forexample -841.47

Do not include the $ sign, just enter the number in dollars,rounded to the nearest cent (2 decimals).

Hint: capital gain / loss = value of the bond now - initialvalue of the bond.

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Transcribed Image Text

You buy a bond with the following features: 9 years to maturity,face value of $1000, coupon rate of 2% (annual coupons) and yieldto maturity of 2.5%. Just after you purchase the bond, the yield tomaturity rises to 4.9%. What is the capital gain or loss on yourbond?If the answer is a capital gain just enter the number. Forexample 581.65If the answer is a capital loss enter a negative number. Forexample -841.47Do not include the $ sign, just enter the number in dollars,rounded to the nearest cent (2 decimals).Hint: capital gain / loss = value of the bond now - initialvalue of the bond.

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