Suppose you purchase a one-year bond that has a $450 coupon and a face value of $5000,and immediately after you purchase the bond,new bonds are issued that are otherwise identical,except they have coupons of $375.If you sell your bond,you will
A) suffer a loss of $5.76.
B) suffer a loss of $412.84.
C) receive a gain of $69.77.
D) receive a gain of $418.60.
Correct Answer:
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