Four and one-half years ago Glenda purchased 15 $1000 bonds in a Province of New Brunswick issue carrying an 8.5% coupon and priced to yield 9.8% (compounded semiannually). The bonds then had 18 years remaining until maturity. The bond market now requires a yield to maturity on the bonds of 8.0% compounded semiannually. If Glenda sells the bonds today, what will be the dollar amount of her capital gain or loss?

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The Answer of Four and one-half years ago Glenda purchased 15 $1000 bonds in a Province of New Brunswick issue carrying an 8.5% coupon and priced to yield 9.8% (compounded semiannually). The bonds then had 18 years remaining until maturity. The bond market now requires a yield to maturity on the bonds of 8.0% compounded semiannually. If Glenda sells the bonds today, what will be the dollar amount of her capital gain or loss?

Four and One-Half Years Ago Glenda Purchased 15 $1000 Bonds