Two and one-half years ago the Province of Saskatchewan sold an issue of 25-year, 6% coupon bonds. Calculate an investor's percent capital gain for the entire 2½ -year holding period if the current rate of return required in the bond market is:
a) 6.5%.
b) 6%.
c) 5.5%.

Question

Two and one-half years ago the Province of Saskatchewan sold an issue of 25-year, 6% coupon bonds. Calculate an investor's percent capital gain for the entire 2½ -year holding period if the current rate of return required in the bond market is:
a) 6.5%. 
b) 6%.
c) 5.5%.

Quizplus · Accepted Answer

The Answer of Two and one-half years ago the Province of Saskatchewan sold an issue of 25-year, 6% coupon bonds. Calculate an investor's percent capital gain for the entire 2½ -year holding period if the current rate of return required in the bond market is:
a) 6.5%. 
b) 6%.
c) 5.5%.

Two and One-Half Years Ago the Province of Saskatchewan Sold