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A CD with a Face Value of EUR 10,000,000

Question 3

Multiple Choice

A CD with a face value of EUR 10,000,000.00 and a coupon of 3% was issued at par for 182 days and is now trading at 3.10% with 120 days remaining to maturity. What has been the capital gain or loss since issue?


A) -EUR 52,161.00
B) -t-EUR 47,839.00
C) -EUR 3,827.67
D) Nil

Correct Answer:

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